Think Bigger. Sonnenfeldt Michael W.

How else do you start a business and keep it afloat? How else could we compete or succeed? How do you power through the tough times to get to the successful times?

      One of the reasons that so many entrepreneurs who are successful right out of the gate lose steam is that they can’t resist the temptation to broadcast or just enjoy the fruits of their success. A seasoned entrepreneur himself, and a principal in a company that finances other businesses, George Heisel has witnessed this problem often:

      A couple has saved $200,000 to $300,000 between them, and they start a business, a diner, say. They use their life savings to advertise, spending $100,000 the first year. The diner grows, and it starts generating $150,000 in cash flow. They want to show how successful their new diner is, so they buy a Mercedes or a new house. Then the mortgage or car payments start, and soon they’re no longer doing the same amount of advertising as last year, and they can’t grow their business. And that’s why they fail, because someone else with more cash to invest will open a diner nearby.11

      Heisel resisted that temptation in 2001 when he started his own business, a medical supply company specializing in products for people with diabetes. For the first two years, he took no salary, plowing all his profits into advertising; as the business grew, he took only a small salary and made no distributions for seven years. He and his wife, a doctor, rented a house. It’s a common story among successful founders, many of who start their businesses with savings: They funneled their earnings back into the business while also squirreling away as much cash as possible for a rainy day.