Letting “The tale wag the dog” is an expression which refers to someone allowing their hopes and dreams to dictate their decisions. It can also be called “getting in over your head”, or just let’s plain call it what it is… Don’t spend money you don’t have (yet).
There is definetly something to be said about INVESTING in ones business. There is much to be said about those who dare to take risks. Sometimes you will find yourself in a situation where to get to that next level, you will have to take a risk; but let that risk be a calculated one.
A perfect example of allowing the tale to wag the dog could be the decision to move into a larger office space. You may use the decision making process that you want to hire more sales people in the future and will need a place to put them. This may be true, but the problem lies when you maybe don’t hire the sales people you thought you would and end up with empty space and a higher rent bill or mortgage than you really need. That’s the tale wagging the dog.
Rather it’d be a better decision to hold off on the upgrade until you really need it. In other words, don’t go after a larger office until the one you have is really and truly outgrown. Don’t lock yourself into a larger monetary commitment with the thought that the money will come, rather wait for the money to come, then decide if you really need the larger commitment.
Another common “tale wagging the dog” episode, especially with contracting businesses, is for the business owner to buy a new truck with the thought that it’s going to be a great year, or wants to show off, when in reality the truck he already has may be a perfectly good vehicle. When the tale wags the dog you get yourself a larger expense sheet, but don’t always have anything positive to show for it.
Instead learn more about budgeting and planning, learn about goal setting. Learning these necessary skills will prevent you from making major financial mistakes which may lead to catastrophic results.