Posts Tagged ‘Living Modestly’

The Value of Living Modestly

Monday, December 27th, 2010

I’m really glad that somehow I learned very early on in my life to live modestly. I think it’s a principle that has eternal value and many people underestimate its power. I honestly wouldn’t be able to be living the dream and being an entrepreneur in Las Vegas if it weren’t for this principle.

However, I think one of the best features of modesty is the perspective it gives you. When you live a modest lifestyle, then your “splurges” still only amount to what people think are normal. However, from your perspective they’re absolutely fantastic and appreciated. For example, Christmas can be 10 times sweeter at half the cost just by living modestly the rest of the year.

Some of these same principles apply to business. In business it is called boot strapping it or a lean startup or getting by with what’s needed. I’m sure that some times I take them too far. However, I think that generally these principles are great business. At least when you’re building web applications.

There’s something incredibly valuable to a web application to be given constraints on what you can and can’t do. These constraints force you to narrowly focus on what’s most important. It means you have to be completely focused on a specific goal and nail it. There’s not room for fluff and extras which don’t add value.

Living modestly in a startup means you have a longer run way to test out ideas and improve those ideas based on customer feedback. Obviously, once you start seeing traction and you’ve been able to refine your customer acquisition model, then you can apply the gas. However, until then keeping your burn rate low (living modestly) means that you’ll still have enough gas to get to the next gas station.

Although, don’t underestimate the long term value of a company whose DNA is living modestly either.