To Achieve something, you must want it as much as you want to pee.
Over a year ago, I began my quest to find answers to my two most pressing entrepreneurial questions:
What does it really take for an entrepreneur to be successful? And what does it take for a business owner to be the best of the best?
My Export and Logistic business takes me across the world, so I used the opportunity. I’ve spoken with business owners, self made entreprenuers from different industries in all stages of business growth. I’ve also participated in numerous discussions, conferences, and usually attend Trade Fair to look out some business prospects in every trade. I read books and biographies by reknown business persons and top marketers like Steve Jobs, as well as I’m an addict of Google Uncle, I sit infront of Uncle and think what should I ask him to search it for me, tonight? Thanks to Google, it helps a lot. I find and read in ebusiness magazines, the articles based on unknown – turns – reknown, or celebrity – turns – entreprenuer, and whatever I find about those who started their ventures late but are now running their businesses or are aspiring entrepreneurs.
I strongly believe in Idea Exchange, people associated (remotely/closely)to my field have been exchanging ideas and supporting one another with advice on how to succeed as a small business owner, and I really learned a lot in terms of understanding what they avoided and to what length they went from risk point of view. I compiled a list of some 20 random points, out of which I distilled 5 points of what I call golden financial rules for entrepreneurs:
1. Work on your business, not just in your business:
– When you are surrounded by your own business day in and day out, it’s important to take a step back and make sure you are handling all aspects of the business.
Sometimes entrepreneurs are so focused on their products or services, they may overlook their business finances. But it’s important to handle your business finances with intent and in an organized– not haphazard–way.
2. Keep your personal and business wallets separate:
– The old adage that business and pleasure don’t mix also holds true when it comes to your business finances. Set up separate timings for your business and personal events.
Don’t stop talking to your Financial Advisor, CA or Banker throu out the process of starting your company, since it can help you feel more confident that you are managing your personal finances wisely while you begin to build your business.
3. Have a “Drop-Dead” Number:
Set a threshold for the minimum amount of capital money in the bank that you are not willing to go below. This number will be different for each person, but the important thing to take away is that you think about what this number means to you and save it in advance.
It’s important to build up and maintain this “healthy reserve” or “cushion amount” to allow you to manage the lean months or the periods of uncertain cash flow. If you find that you are approaching your “drop dead” number, this is where discipline must override passion. Step back, take a hard look at your situation, and see what’s working and what’s not.
4. Overconfidence Really Kills:
We tend to think we’re smarter than we really are and that we know more than we really do. This over confidence can climb along with the profits, leading some folks to trade excessively and take on too much risk. You know this ‘too much’ demon is always dangerous.
5. Hindsight Bias Risk:
In retrospect, it might seem obvious that market would come roaring back from the drubbing of 2008 and early 2009. Indeed, it’s easy to forget all the economic uncertainty that existed at the time and convince ourselves that we foresaw the rally.
This hindsight bias can further bolster our confidence, possibly prompting us to make bold market forecasts today and worst, act upon them.
These five points ensures minimising the uncertain and unpredictable financial situations, a newbie business person should follow, and needless to say, those who manage their finance like I mentioned above make them ultimate successful.
(author is an export/ manufacturing/ logistics entreprenuer)
…shabab khan blog
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