Photo: Reggie Aggarwal/Cvent
Today’s advice comes from Reggie Aggarwal, CEO of the online event management software company Cvent, via his interview with Fast Company:“Have you ever been to India? You go out and look at the people who live outside. They’ll take a tire, an old tire that an American would throw out or pay someone to take away. They’ll cut it up in strips, and put it on the roof, and it becomes rubber on the roof, so rain doesn’t sink in. They’re forced to be creative because they have no money. Frugality is important because it forces you to be creative.”
When Cvent ran into some financial troubles nearly a decade ago, Aggarwal tightened the company’s budget and was able to bounce back from this “near-death experience.” By taking a more frugal approach to running the business, the company was still able to achieve its goals, even with a limited budget, and the company is now thriving.
Aggarwal says his frugality enabled him to find creative solutions to the company’s problems and daily operations. Many other businesses face similar situations at one time or another, and Aggarwal’s advice is to think outside the box. Frugality in some areas can give you more wiggling room in others.
“We still share rooms when we travel… We all fly economy. How often does a CEO fly economy internationally? We probably save a half million a year that way. I’d rather take that half million and invest in hiring more sales people, tech people, or customer service people.”
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