Think like an entrepreneur
The last few weeks, I’ve been talking about investments and having control over your finances. In addition to this information, there is something very important to remember as you move forward with your financial education – your mindset. Robert and I look at everything in our lives through the eyes of an entrepreneur.
Every investment is a business.
This means that every investment needs to be treated like a business with a purpose, income statement and balance sheet. It also needs the right team behind it with sales and marketing to drive it, and of course, profitability. No matter how small an investment you make, these are the fundamentals of a successful business.
I became an entrepreneur in 1984 with my first, part-time business. I had no money or experience, but it was a “do or die” experience that taught me some very important lessons.
As I state in “It’s Rising Time!”, here are the investment rules I live by:
“The investment must put money in my pocket.
The investment must stand alone.
I want to control the investment whenever possible.
Every investment must have an exit strategy or exit options.”
When investing, I always look at it through the eyes of an entrepreneur. The investment must have cash flow on its own, and I need to be able to control the income, expenses and debt whenever possible. And before I even buy an investment, I know my exit strategy or how I will sell the investment.
Having an entrepreneurial mindset helps you prepare for the future, increase your financial education to reduce risk and control your money. And it’s essential in today’s fast-changing business and economic environment. For example, the Forbes article, “Why Everyone Will Have to Become an Entrepreneur,” states:
“But the fact is the rate of change is only increasing. And the only thing you are able to count on when it comes to how you are going to make your living is you. And that’s why you better be prepared to be an entrepreneur. In the best of worlds (i.e. you get to keep doing the job you currently like) you will gain new skills and new ways of thinking that you will allow you do your existing job better. And if the worst happens—the winds of change sweep you out the door—you will have a head start on whatever it is you do next. Either way you need to be prepared to be an entrepreneur.”
Have an entrepreneur’s mindset.
Unlike employees, entrepreneurs don’t rely on the “safety-net” of a paycheck from someone else. They learn from their mistakes, are driven to solve problems, face challenges with new answers, and get results no matter home much time or effort it takes.
Creating your entrepreneurial mindset will help you change the way you look at life and investing. To start, look back at the Triple A Triangle™. Figure out what you want to accomplish and constantly learn new things pertinent to your goals. Then, take action on what you want to achieve and review your investments to see if they are giving you the results you want.
It doesn’t matter where you are now in life. What matters is the mindset you bring to your investments. Think like an entrepreneur. Your investments are a business, and you need to treat them like that in order to reach your financial goals.
What are you going to do today to take control of your money and make better investment choices?
For more information, check out “It’s Rising Time!” and our free, financial education community here.