Source: Dr. Maxwell Ampong
I can always tell when I’m dealing with a founder who’s been through it. It doesn’t take me long now. Their one giveaway is how they spend their money. When I sit down with early-stage founders or young entrepreneurs in Ghana, especially the ones looking for my money, it’s often one of the first things I look out for.
It would surprise you how many of them have fancy offices and sleek furniture that costs more than it should. I have even seen a branded coffee machine sitting in the corner like it’s a tech company from Silicon Valley. And I choke up just a little because usually, the truth isn’t what they’d want to hear when I myself have nice furniture.
I choke up because I’ve seen that mistake before, many times. You get so caught up in looking successful that you forget what actually makes you successful. That office furniture, that coffee machine, it doesn’t move your business forward. It’s a distraction, and keeping it up will distract you at that early stage. And most importantly, it shows me that you, the founder, haven’t yet figured out one of the biggest lessons in building a company: it’s not your money anymore.
The Common Mistake: It’s Not Your Money Anymore
One of the biggest misconceptions I see among young founders is this idea that company money is still somehow their money. Let me break it down: once that cash enters the company’s account, it’s no longer yours. Whether you raised it from investors, bootstrapped it with your savings, or got a grant from some well-meaning institution, it doesn’t matter. The moment it enters the business, it belongs to the business. You are not the one going on a shopping spree. The company is.
But here’s where the real problem lies. I’ve walked into offices of early-stage founders where I can tell, within five minutes, that the founder sees that money as their own personal bank account. You see it in the flashy office, the unnecessary perks, the lavish spending on things that don’t drive the company forward. And the reality is, when a founder thinks that way, they’re telling me something important, that they’re not yet ready to scale. They’re not even ready to build.
I know because I’ve been there. When you’re just starting out, every cedi counts. Operating within this Ghana economy with global competitors already puts you a couple of paces back with one hand tied to your back, so if you don’t have the discipline to respect company money as separate from your own, you’ll quickly find yourself burning through cash faster than you can raise it. The irony is that the very thing meant to help you grow, which is the capital, is the same thing you’re misusing to look like you’ve already made it when you haven’t.
Great Founders Are Frugal: The ‘P3p3i’ Mentality
There’s something I’ve noticed across the board: the best founders are frugal. And I’m not just talking about being careful with spending. I’m talking about being p3p3i – the Ghanaian word that means miserly, calculated, or downright stingy. Some might think that being p3p3i is a bad thing. But in business, especially when you’re starting, it’s an essential survival skill.
The great founders know that every cedi, every pesewa, counts. They’re the ones who understand that the money has to go into the right places, into the things that drive growth. It’s about making deliberate choices. Do you need that new laptop, or can the old one do the job for another year? Do you really need to be in that expensive co-working space, or can you work from a smaller, less fancy office for now?
The truth is, most of the wildly successful founders didn’t start by paying themselves a salary. Not a dime, not a kobo. Everything went back into the company. Because they knew that the more they poured into the business, the faster it would grow. They weren’t distracted by flashy cars or flashy offices or the image of success. They were obsessed with the grind, the real work that builds something from nothing.
It’s easy to be tempted by the trappings of success, but if you want to make it in the long run, you’ve got to embrace the p3p3i mentality. You don’t spend a cedi unless it’s going to move your business forward. That’s how you build something sustainable.
Key Traits of Successful Founders: Company-First
If there’s one thing all successful founders have in common, it’s their company-first mindset. They understand that, in the early days, the company comes before everything. It comes before comfort, before flashy offices, even before their own pockets. It’s not glamorous, but it’s real.
The founders who make it are the ones who sacrifice. They’re not drawing salaries, they’re not living large, and they’re definitely not spending on things that don’t drive the business forward. They understand that what’s good for the company is ultimately good for them, but only if they put the company first. The office may be small, the chairs may be a bit less comfortable, and the pay cheque may be less, but they are laser-focused on growing the business.
Let me give you a practical example. We’ve all read about founders who worked for years with no salary, living off the bare minimum, just so they could reinvest every pesewa back into their company. Why? Because they believed in the potential of what they were building. They understood that if the company succeeds, their personal success will follow. This isn’t just about being frugal; it’s about having the discipline to do what’s best for the business, even when it’s hard.
So here’s a question for every founder: Are you prepared to live like this? Are you willing to sacrifice your comfort, your salary, and your image to put your company first? Because that’s what it takes. It’s not about looking successful; it’s about being successful. And being successful means prioritising the business over everything else.
Practical Advice for Young Entrepreneurs
If you’re serious about building a business, here’s a checklist of hard truths you need to swallow early on. This isn’t a motivational speech. It is the reality check no one gave you at that flashy entrepreneurship seminar:
- Stop it, cut out the chaff.
Those nice-to-have expenses? They’re holding you back. Get rid of the unnecessary. You don’t need the best office in town, nor do you need the latest tech gadgets. Focus on what directly contributes to growing your business. Ask yourself, “Will this expense move us forward?” If the answer is no, scrap it.
- Your Money is not Company Money
This is one of the hardest lessons to learn, but it’s crucial. You and the business are two separate entities. Once you put money into the company, it belongs to the company. Don’t blur the lines, don’t treat the company like your personal bank account. You need to respect that separation, or you’ll bleed cash.
- Forget About Personal Glory
If your goal is to look successful, then you’re in the wrong game. Focus on building value, not building a flashy image. Your job as a founder is to make the company thrive, not to make yourself look important. Real founders know that the company’s success is the only thing that matters.
- Invest Everything Back into the Business
The early stages are about growth, not comfort. If you’re paying yourself a comfortable salary while the business struggles to scale, you’re doing it wrong. Everything, and I mean everything, should go back into the company. That’s how you get traction.
- Embrace the Grind
You’ll work long hours, probably without good pay, and there will be days when it feels like nothing is moving. That’s normal. The question is, can you push through? The flashy stuff comes later. Right now, it’s all about the grind, the hustle, and the relentless focus on growing your business.
Are You Ready to be a REAL Founder?
A REAL Founder is not just any founder but one who understands what it really takes. Are you ready to cut the fluff, to sacrifice your comfort, and to put your company’s growth above your own? Because if you’re more concerned with appearances, with looking like a success before you’ve actually built anything, then you’re not ready.
Being a founder isn’t about the shiny things. It’s about grit, frugality, and an almost obsessive focus on building something that lasts. It’s about taking every cedi, pesewa, or dollar and making sure it’s working hard for the company. If you’re not willing to make that commitment, it’s time to ask yourself: are you really prepared for this journey?
The founders who make it, the ones who stand the test of time, are the ones who live this truth every day. They’re p3p3i, they’re company-first, and they’re relentless in their pursuit of success. If you’re ready to live like that, then welcome! You just might be ready to be a real founder!
I hope you found this article insightful and enjoyable. Your feedback is highly valued and appreciated. I welcome your suggestions for topics you want me to address or provide insights on. You can schedule a meeting with me at your convenience through my Calendly at calendly.com/maxwellampong. Alternatively, connect with me through various channels on my Linktree page at www.linktr.ee/themax.
I wish you a highly productive and successful week ahead!
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Dr. Maxwell Ampong serves as the CEO of Maxwell Investments Group. He is also an Honorary Curator at the Ghana National Museum and the Official Business Advisor with the General Agricultural Workers Union of Ghana (GAWU) under Ghana’s Trade Union Congress (TUC). Dr. Ampong writes on relevant economic topics and provides general perspective pieces. “Entrepreneur In You” is supported by GCB Bank PLC and operates under the auspices of the Africa School of Entrepreneurship, an initiative of Maxwell Investments Group.
Source: www.thenewindependentonline.com
