commitment

1. Accounting: Earmarking or setting-aside of funds in response to a purchase requisition. These funds remain committed (encumbered) until the purchased good or service is paid-for after its receipt, thereby converting the encumbrance into an expenditure. See also obligation.

2. Lending: Written assurance from a lender to a borrower that a specified amount of loan or line of credit will be made available at a certain rate and during a certain period. Lenders charge a commitment fee for this service.

3. Law: Order by which a court directs a person to be confined in a penal or mental health institution.

Don't think about a potential venture just in terms of the time commitment, the cost, the probability of success etc. but also think about whether you will have fun doing it. You can't do something for too long exceptionally well without having fun in the process because if you don't enjoy it, you won't be intrinsically inclined to go the extra mile.

• Locking In Customers