Understanding money, pricing, and spending is the real backbone of business. I learned this during my time at Harvard Chambers, though I only appreciated its value later.
When people think about starting a business, the first things that come to mind are usually big ideas, logos, websites, or maybe even a catchy brand name. But none of that matters if you don’t understand how money actually works in your business.
Knowing the concept of money, the worth of pricing, and the value of spending is so important and way too underrated.
Let me break it down.
Knowing what money really is.
Money isn’t just what’s in your account, it’s how your business breathes. It’s how you pay your team, cover your rent and bills, invest in growth, and survive the slow months. But here’s what many people miss, making money doesn’t mean you’re doing well, and spending money doesn’t always mean you’re growing.
If you don’t understand where your money is coming from, where it’s going, and what it should be doing, your business can spiral without you even noticing. Too many entrepreneurs run out of cash not because they weren’t successful, but because they didn’t manage their money properly.
Pricing isn’t just picking a number.
Pricing feels like a guessing game for a lot of people. They look at what others are charging and just go with that. But pricing is way deeper than that.
Your price tells people what you think your product or service is worth. Price too low, and people might assume it’s low quality. Price too high, and they might walk away. The key is knowing your value, understanding your costs, and being confident in what you offer. The mindset of pricing through your worth matters more than you’d think, especially in the service business.
Spending smart is a superpower.
When you start making money, it’s tempting to spend. A new office. Ads. Fancy tools. Conferences. New cars. Luxury life. But not all spending is smart spending.
Every kobo in your business has a job. If it’s not working for you, growing your reach, saving you time, or making life easier for your customers, it’s wasted. The most successful business owners don’t necessarily spend the most, but they spend the wisest.
You don’t need to be cheap, but you do need to be intentional. What keeps businesses alive is mainly hinged on the expenses rather than the income. We don’t talk about it enough because it feels basic but getting these basics right is exactly what separates sustainable businesses from the ones that burn out.
To all young entrepreneurs, if you’re running a business (or thinking of starting one), give money, pricing, and spending the attention they deserve. Learn about them. Talk about them. Respect them. Because when you get those three things right, everything else gets easier.
✍️ Amara Ann Unachukwu.
