One author suggested that starting and running a business is 90% emotions and 10% skill. I have thought about idea for years and as I have started, bought and am running my own companies, I have realized that this is absolutely and curiously true.
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Showing posts with label Financial Education. Show all posts
Showing posts with label Financial Education. Show all posts
Let's face it. Our school system is just not adequate to prepare our children to accumulate wealth and riches. The wealth of information in our schools are not able to place kids on the road to prosperity. They are given redundant assignments that border between the silly and the naive.
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MANILA, Philippines - A comprehensive seminar on “How to start and manage a home or commercial-based travel agency business profitably without risk,” will be held on July 10 from 8:30 a.m. to 5:30 p.m. at the Polytechnic University of the Philippines (PUP) Del Pilar Campus, Magsaysay Blvd. in Sta. Mesa, Manila.
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We have been receiving comments from people who have sums of monies and who would like to start a business. This can be quite a tricky question to give light to and I am not going to make specific advice on your personal circumstances since we are all in different situations, aside from the many varied dialects that we communicate with.
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(The Philippine Star) Updated June 02, 2011 12:00 AM
WASHINGTON DC--Around one percent of households have 39 percent of the globe’s wealth according to a study published Tuesday, pointing to increased inequalities in the wake of the global downturn.
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WASHINGTON DC--Around one percent of households have 39 percent of the globe’s wealth according to a study published Tuesday, pointing to increased inequalities in the wake of the global downturn.
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MANILA, Philippines - The Golden Treasures Skills and Development Program will conduct a comprehensive one-day seminar on the mind-set of successful entrepreneurs.
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By now the turmoil besetting the banking sector with the recent closure of Banco Filipino has become a reality. A reality that has bitten most with the ugly fact that life savings and other financial instruments went down the drain at the twinkling of an eye. Whatever the reason for the closure, be it political, a smear campaign or a power struggle between a government agency bullying a private entity, one thing remains, many are going through a heavy financial ordeal as we speak.
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Repost from: http://thinkrichpinoy.com/im-bc/
The Internet Marketing Bootcamp is bringing together 17 Internet Experts for one purpose – to help you become a dominant force online. If you haven’t registered,click here.
If you have an existing business and you want to bring it online then you’re going to get a ton of ideas here. These are not theories either. These are actual strategies implemented by market leaders. Let’s go down the line-up one-by-one and see for yourself what you stand to gain. Learn Bo’s business model and discover how Bo uses the Internet to bring in Php1.8 million monthly for Kerygma Family and Anawim.
Click Here to Read More...
The Internet Marketing Bootcamp is bringing together 17 Internet Experts for one purpose – to help you become a dominant force online. If you haven’t registered,click here.
If you have an existing business and you want to bring it online then you’re going to get a ton of ideas here. These are not theories either. These are actual strategies implemented by market leaders. Let’s go down the line-up one-by-one and see for yourself what you stand to gain. Learn Bo’s business model and discover how Bo uses the Internet to bring in Php1.8 million monthly for Kerygma Family and Anawim.
Click Here to Read More...
From Entreprenews (www.bworldonline.com)
SCORES of entrepreneurs regaling tales of success in magazines these days make it more enticing for restless people, young and old, to fantasize about building their own business. In the end, however, only a determined few would actually jump the plan, with the rest often discouraged by the tedious steps involved in setting up a new firm.
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Election is just around the corner and soon, a new President will be sitting in the Palace. Most will look to him for hope to pull the country out of the many miseries that beset it. While politics and the government are beyond our control, it remains a duty upon us-- it's citizens to vote responsible and by using good judgment.
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In going around trying to help fellow Entrepreneurs, I have observed that very expensive mistakes could have been averted to the point that the businesses could have been saved if the right kind of structure or legal personality were selected.
There are several entities to select from. What I recommend is that by default, when starting a business especially when you are in the 'alpha' phase of trying a viable idea, it would be best NOT to be registered for starters since you are still unsure if there is a certain demand for a product or service. If you can prove that the business idea can give absolute good cash flow (which would take you 1-3 months) then it would probably be a good idea to select a legal personality and be registered.
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There are several entities to select from. What I recommend is that by default, when starting a business especially when you are in the 'alpha' phase of trying a viable idea, it would be best NOT to be registered for starters since you are still unsure if there is a certain demand for a product or service. If you can prove that the business idea can give absolute good cash flow (which would take you 1-3 months) then it would probably be a good idea to select a legal personality and be registered.
Click Here to Read More...
By Cora Llamas
Philippine Daily Inquirer
WHAT businesses do overseas Filipino workers (OFWs) invest in once they decide to resettle back in the Philippines?
Food franchises, according to sources, in the form of inexpensive fast-food stalls are almost always the first business ventures that OFWs go into, in the hope of making a quick profit at minimal capital.
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Philippine Daily Inquirer
WHAT businesses do overseas Filipino workers (OFWs) invest in once they decide to resettle back in the Philippines?
Food franchises, according to sources, in the form of inexpensive fast-food stalls are almost always the first business ventures that OFWs go into, in the hope of making a quick profit at minimal capital.
Click Here to Read More...
Another aspect of Time Utilization and Money as it relates to business success is that of how one spends leisure time. Financial education is a must for bustling entrepreneurs and can be likened to riding a bike.
Let us say for example you are interested to learn how to ride a bike. First step naturally would be to read about literature on how to ride a bike. After getting the basics down, you try to get on a real bike to test the theory behind it. After a few applications and a few bumps here and there you decide to ask help from a cousin of yours who knows how to expertly ride a bike and with a few practice sessions, you become better at it. The same is true in business-- Reading about the literature, finding a mentor and applying the principles are crucial to the learning process, but if one spends most of his/her time in entertainment instead of gathering and learning business concepts and trying them out, the odds against success increases.
Financial education needs a separate time allotment and chances are, if you are employed and starting a business on the side then it would be wise to use spare time efficiently by learning all you can about business. This can be a difficult choice to make especially in a world that is full of entertainment options. There is a theory that if you decide to take on difficult options NOW, the process tends to become easier whereas, having an easy life now would most certainly yield a difficult one LATER on. Or in other words, that which is easy becomes difficult LATER ON and that which is difficult becomes easy LATER ON. It's your choice.
Another aspect of Time in relation to Money is the choosing of worthwhile advisers. When we mention about financial education, it would be wise to choose authors that are credible and have real life business or investing experience. It would be futile to grab every book that talks about business. Not everyone who writes about business knows what is actually going on in real life scenarios. It would save you much more time if you could go to sources that can give good, actual and worthwhile advice and find mentors who are actually succeeding in the field of business. It would be a great waste of time if you follow advice from people or authors that do not have real life experience because in essence, you become a guinea pig of sorts. Click Here to Read More...
Let us say for example you are interested to learn how to ride a bike. First step naturally would be to read about literature on how to ride a bike. After getting the basics down, you try to get on a real bike to test the theory behind it. After a few applications and a few bumps here and there you decide to ask help from a cousin of yours who knows how to expertly ride a bike and with a few practice sessions, you become better at it. The same is true in business-- Reading about the literature, finding a mentor and applying the principles are crucial to the learning process, but if one spends most of his/her time in entertainment instead of gathering and learning business concepts and trying them out, the odds against success increases.
Financial education needs a separate time allotment and chances are, if you are employed and starting a business on the side then it would be wise to use spare time efficiently by learning all you can about business. This can be a difficult choice to make especially in a world that is full of entertainment options. There is a theory that if you decide to take on difficult options NOW, the process tends to become easier whereas, having an easy life now would most certainly yield a difficult one LATER on. Or in other words, that which is easy becomes difficult LATER ON and that which is difficult becomes easy LATER ON. It's your choice.
Another aspect of Time in relation to Money is the choosing of worthwhile advisers. When we mention about financial education, it would be wise to choose authors that are credible and have real life business or investing experience. It would be futile to grab every book that talks about business. Not everyone who writes about business knows what is actually going on in real life scenarios. It would save you much more time if you could go to sources that can give good, actual and worthwhile advice and find mentors who are actually succeeding in the field of business. It would be a great waste of time if you follow advice from people or authors that do not have real life experience because in essence, you become a guinea pig of sorts. Click Here to Read More...
This is going to be a little tough on the bones. When they say that building a business is 90% Emotions and 10% Technicalities, they were not kidding. Being in a business is a very emotional thing because of the MONEY involved. There are various ways that the money in a business can make or break the business and the business person:
1st- Without the skill of reading or making financial statements, one would not know the difference between SALES, GROSS PROFIT, NET PROFIT and so forth. I know a lot of people who take money to spend for their personal lives from SALES (if you think that is a good idea then I would suggest you get educated with financial statements.)
2nd- Mixing personal money and business money, almost all of budding entreps are guilty of this at the beginning but somehow we kind of evolve into 2 separate entities. Mixing personal money and business money will drive you nuts and chances are, you wife will scowl at you all the time. (guaranteed!)
3rd- Not knowing the ratios of a business and knowing the demographics of expenses in a business will leave you in the dark and lead to bad decisions. Ratios that need to be found out include but are not limited to: Income to Expense Ratios, Profit Margins, Return of Investment, Net Margins etc..
4th- Just because sales is good, business is good. This can become a very naive statement to make. Others would justify splurging and spending on liabilities just because they are selling very well, although there might be some truth to that, it is only a small piece of the grand financial statement. The bottom line is what counts and how consistent a business can give such a bottom line.
Truth be told, a business will often reflect the ability of the owner to manage his or her own finances. Small victories lead to much larger victories. Private victories lead to public victories. Yes, you have it right, one needs to manage his own personal finances before he can manage the finances of a business.
One of our readers, Jay Castillo has a very good article about this in his blog. Click here to read.
When I started out as a sole proprietor, I practiced paying myself first. Since I was single and had little liabilities, i managed to save 50-60% of my income to invest in my business and also to further my technical skills. All that hard work really paid off. If you have not started this habit, you can acquire information about managing personal finances from a lot of sources.
Be awesome! Click Here to Read More...
1st- Without the skill of reading or making financial statements, one would not know the difference between SALES, GROSS PROFIT, NET PROFIT and so forth. I know a lot of people who take money to spend for their personal lives from SALES (if you think that is a good idea then I would suggest you get educated with financial statements.)
2nd- Mixing personal money and business money, almost all of budding entreps are guilty of this at the beginning but somehow we kind of evolve into 2 separate entities. Mixing personal money and business money will drive you nuts and chances are, you wife will scowl at you all the time. (guaranteed!)
3rd- Not knowing the ratios of a business and knowing the demographics of expenses in a business will leave you in the dark and lead to bad decisions. Ratios that need to be found out include but are not limited to: Income to Expense Ratios, Profit Margins, Return of Investment, Net Margins etc..
4th- Just because sales is good, business is good. This can become a very naive statement to make. Others would justify splurging and spending on liabilities just because they are selling very well, although there might be some truth to that, it is only a small piece of the grand financial statement. The bottom line is what counts and how consistent a business can give such a bottom line.
Truth be told, a business will often reflect the ability of the owner to manage his or her own finances. Small victories lead to much larger victories. Private victories lead to public victories. Yes, you have it right, one needs to manage his own personal finances before he can manage the finances of a business.
One of our readers, Jay Castillo has a very good article about this in his blog. Click here to read.
When I started out as a sole proprietor, I practiced paying myself first. Since I was single and had little liabilities, i managed to save 50-60% of my income to invest in my business and also to further my technical skills. All that hard work really paid off. If you have not started this habit, you can acquire information about managing personal finances from a lot of sources.
Be awesome! Click Here to Read More...
Perspective
Written by PETER BREGMAN
Monday, 20 July 2009 01:36
Every time I ask a roomful of executives to list the five moments their careers leapt forward, a story of failure always makes the cut. For some this involved the loss of a job. For others it was the failure of a larger system, like an economic downturn, that required them to step up. Yet most of us spend tremendous effort trying to avoid situations that could lead to failure.
According to Stanford University professor Carol Dweck, we have a mind-set problem. She has done extensive research in order to understand why certain people give up in the face of adversity—or evade it altogether—while others strive to overcome it.
If you believe that your talents are inborn or fixed, then you will try to avoid failure at all costs because setbacks are proof of your limitations. People with fixed mind-sets like to solve the same problems over and over again. Children with fixed mind-sets would rather redo an easy jigsaw puzzle than try a harder one.
But if you believe your talent can grow with persistence and effort, then you seek out failure as an opportunity to improve. People with a growth mind-set feel smart when they’re learning, not when they’re flawless.
Michael Jordan has a growth mind-set. Most successful people do. In high school he was cut from the basketball team, yet he learned how to leverage failure in order to succeed: “I’ve missed more than 9,000 shots in my career; I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-wining shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”
A growth mind-set is the secret to maximizing potential. Want to develop your staff’s skills? Give them tasks above their ability. Tell them you expect them to struggle, that it will take more time than their familiar responsibilities, and that you expect they’ll make some mistakes along the way. But you know they can do it.
Want to increase your own performance? Set high goals that you only have a 50 to 70 percent chance of attaining. Then, when you fail, figure out what you should do differently and try again. That’s practice. And according to recent studies, 10,000 hours of practice will make you an expert at anything—no matter where you start.
*A very interesting article which is related to building your own business, your failure threshold which is part of your emotional make-up is one of the key factors within the mind that you can develop. Click Here to Read More...
Written by PETER BREGMAN
Monday, 20 July 2009 01:36
Every time I ask a roomful of executives to list the five moments their careers leapt forward, a story of failure always makes the cut. For some this involved the loss of a job. For others it was the failure of a larger system, like an economic downturn, that required them to step up. Yet most of us spend tremendous effort trying to avoid situations that could lead to failure.
According to Stanford University professor Carol Dweck, we have a mind-set problem. She has done extensive research in order to understand why certain people give up in the face of adversity—or evade it altogether—while others strive to overcome it.
If you believe that your talents are inborn or fixed, then you will try to avoid failure at all costs because setbacks are proof of your limitations. People with fixed mind-sets like to solve the same problems over and over again. Children with fixed mind-sets would rather redo an easy jigsaw puzzle than try a harder one.
But if you believe your talent can grow with persistence and effort, then you seek out failure as an opportunity to improve. People with a growth mind-set feel smart when they’re learning, not when they’re flawless.
Michael Jordan has a growth mind-set. Most successful people do. In high school he was cut from the basketball team, yet he learned how to leverage failure in order to succeed: “I’ve missed more than 9,000 shots in my career; I’ve lost almost 300 games. Twenty-six times I’ve been trusted to take the game-wining shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed.”
A growth mind-set is the secret to maximizing potential. Want to develop your staff’s skills? Give them tasks above their ability. Tell them you expect them to struggle, that it will take more time than their familiar responsibilities, and that you expect they’ll make some mistakes along the way. But you know they can do it.
Want to increase your own performance? Set high goals that you only have a 50 to 70 percent chance of attaining. Then, when you fail, figure out what you should do differently and try again. That’s practice. And according to recent studies, 10,000 hours of practice will make you an expert at anything—no matter where you start.
*A very interesting article which is related to building your own business, your failure threshold which is part of your emotional make-up is one of the key factors within the mind that you can develop. Click Here to Read More...
One day, me and my business class members identified 3 essential things that a New Entrepreneur needs to have:
1. The Skill to Sell- in one of my previous articles, I mentioned that Selling is the primary skill that one needs to have to succeed in business. "Nothing happens in a business unless someone sells something." Selling includes profiling your customer and which segment you might want to target for your given product.
2. An Understanding of the Market- this includes knowing who your customers are, who is the competition, what are your advantages over the competition and your key selling points. Understanding the market also includes picking the right product or service to sell. Being a micro entrepreneur, you may want to sell a product or service that already HAS demand. Or in other words, find a SELF-SELLER. If you notice that most of the businesses that our Chinese brethren are under the roof of living 'essentials'--Food, Medicine, Hardware supplies etc., these are all high demand products. It does not mean finding a business with self seller products will guarantee success, all I am saying is that the chances of success increases when there is already high demand for those products that you carry.
3. An Understanding of Financial Statements- Yes, even a carinderia needs a financial statement and needs to keep good records. It is not as difficult as you think, algebra and calculus were more difficult subjects than financial ratios. Income statements, Cash flow statements and Balance sheets are minimum requirements for the Entrepreneur. Click Here to Read More...
1. The Skill to Sell- in one of my previous articles, I mentioned that Selling is the primary skill that one needs to have to succeed in business. "Nothing happens in a business unless someone sells something." Selling includes profiling your customer and which segment you might want to target for your given product.
2. An Understanding of the Market- this includes knowing who your customers are, who is the competition, what are your advantages over the competition and your key selling points. Understanding the market also includes picking the right product or service to sell. Being a micro entrepreneur, you may want to sell a product or service that already HAS demand. Or in other words, find a SELF-SELLER. If you notice that most of the businesses that our Chinese brethren are under the roof of living 'essentials'--Food, Medicine, Hardware supplies etc., these are all high demand products. It does not mean finding a business with self seller products will guarantee success, all I am saying is that the chances of success increases when there is already high demand for those products that you carry.
3. An Understanding of Financial Statements- Yes, even a carinderia needs a financial statement and needs to keep good records. It is not as difficult as you think, algebra and calculus were more difficult subjects than financial ratios. Income statements, Cash flow statements and Balance sheets are minimum requirements for the Entrepreneur. Click Here to Read More...
Thank you for reading this and talking to that little voice in your head about taking action with regards to your financial future. A study conducted in Yale resulted that only 3 out of 100 students are successful, because the 3% set written goals while the 97% did not. By reading the archives and clicking 'FOLLOW' on the blog, you will not only receive good and practical advice, but will also develop a successful mindset until you pick up that pen and start writing financial goals and draft a business plan. Your success is in your hands.
Part of my responsibilities as a business owner is to 'give back' to society. I am excited to announce that I have volunteered to do a 3 day free seminar on "Starting a Micro-Enterprise" here in Zamboanga City. This program has been done in collaboration with the LDS (Latter Day Saints) Employment Resource Center which teaches people to be self-reliant. Teaching is learning twice and when you impart what you know to others then lessons are solidified more in the mind.
Mind you, I am a real Entrepreneur authoring this blog and not some punk trying to write about things just to get advertising exposure. I have founded 2 companies in the last 10 years and am about to start my 3rd (while the 2nd is doing good and the 1st folded up). My experiences, though limited in so many ways, can help small businesses avoid common start-up pitfalls.
The best way to combat the odds of business failure is by being informed. By educating oneself in the rudiments of good business practices and rules of thumb, one can avoid mistakes. So what are you waiting for? Learn through the archives, comment on the articles and receive answers to questions and fears. Click Here to Read More...
Part of my responsibilities as a business owner is to 'give back' to society. I am excited to announce that I have volunteered to do a 3 day free seminar on "Starting a Micro-Enterprise" here in Zamboanga City. This program has been done in collaboration with the LDS (Latter Day Saints) Employment Resource Center which teaches people to be self-reliant. Teaching is learning twice and when you impart what you know to others then lessons are solidified more in the mind.
Mind you, I am a real Entrepreneur authoring this blog and not some punk trying to write about things just to get advertising exposure. I have founded 2 companies in the last 10 years and am about to start my 3rd (while the 2nd is doing good and the 1st folded up). My experiences, though limited in so many ways, can help small businesses avoid common start-up pitfalls.
The best way to combat the odds of business failure is by being informed. By educating oneself in the rudiments of good business practices and rules of thumb, one can avoid mistakes. So what are you waiting for? Learn through the archives, comment on the articles and receive answers to questions and fears. Click Here to Read More...
The first thing that I would do is Congratulate you for having 10,000 pesos saved up in your account, not many Filipinos are keen savers of their hard earned money.
The first thing that one usually thinks of when there is spare cash (be it 1,000 , 10,000 or 100,000 for that matter) is "Magnenegosyo ako!" Going out the first time, our hero tries to find where to invest his money. Be it a Sari-sari Store, a Lotto outlet, a tapsilogan or a carenderia, we are all interested whether the money does come back with a little interest called profit.
What our hero does not realize is : 9 out of 10 start-up businesses fail in the first year. Sa Tagalog, "Mga Siyam sa loob ng Sampung negosyo na nagsisimula palang ay nasasara o nalulugi sa unang taon ng pagnenegosyo!" (I hope my Filipino teacher is not reading this)
Why do they fail on the first year? It is because of various reasons. Some may blame it on lack of capital, some on management. What our hero does not know is that Setting up and Running a Business is a SKILL. It is what we call na "kakayahan", something that needs to be learned, developed and practiced with appropriate mentors.
It is like riding a bicycle. You would not want to ride a bicycle in EDSA without first practicing intensively now would you? But most of our brothers and sisters, do exactly the same when opening a business. They think the capital will make them smarter when in truth, money is just money and does not have power in itself whatsoever.
Adequate preparation, learning what makes a good business run, understanding Cash Flow and basic accounting procedures and knowing the ins and outs of the business will make one join the 10% that do succeed in the world of business and investing. Click Here to Read More...
The first thing that one usually thinks of when there is spare cash (be it 1,000 , 10,000 or 100,000 for that matter) is "Magnenegosyo ako!" Going out the first time, our hero tries to find where to invest his money. Be it a Sari-sari Store, a Lotto outlet, a tapsilogan or a carenderia, we are all interested whether the money does come back with a little interest called profit.
What our hero does not realize is : 9 out of 10 start-up businesses fail in the first year. Sa Tagalog, "Mga Siyam sa loob ng Sampung negosyo na nagsisimula palang ay nasasara o nalulugi sa unang taon ng pagnenegosyo!" (I hope my Filipino teacher is not reading this)
Why do they fail on the first year? It is because of various reasons. Some may blame it on lack of capital, some on management. What our hero does not know is that Setting up and Running a Business is a SKILL. It is what we call na "kakayahan", something that needs to be learned, developed and practiced with appropriate mentors.
It is like riding a bicycle. You would not want to ride a bicycle in EDSA without first practicing intensively now would you? But most of our brothers and sisters, do exactly the same when opening a business. They think the capital will make them smarter when in truth, money is just money and does not have power in itself whatsoever.
Adequate preparation, learning what makes a good business run, understanding Cash Flow and basic accounting procedures and knowing the ins and outs of the business will make one join the 10% that do succeed in the world of business and investing. Click Here to Read More...
by NOOBPRENEUR on FEBRUARY 22, 2009
Being an entrepreneur is easy. What make entrepreneurship hard is because it involves money, either yours or other people’s.
If you play an entrepreneurship game - board game or computer game - you can risk your money rather easily due to the fact that it is ‘replayable’. If you lost, try again, and again.
In real life, the game is not ‘replayable’. Real life is a one way journey (unless you’ve already invented time machine!)
In real life, every money decision involves risks, and minimising the risks, unfortunately, need strong financial intelligence.
One last thing - in real life, minimising the risks through control mechanisms will eventually bring success or failure to you.
Having the right financial knowledge helps you averse risks and avoid bankruptcy.
Having the right financial knowledge keeps your money in sight, and every cent will go into or out from your pocket within your tight supervision… and control.
Where to seek the right financial knowledge
When I mention financial intelligence, I’m not talking about financial intelligence through formal financial education, i.e. in colleges. I’m talking about financial knowledge that is acquired through applied education - seminars, courses, mentorship and, of course, knowledge from getting your own hands dirty.
Formal financial education is important. But in my opinion, informal, applied education is more important.
Sadly, many entrepreneurs lack financial knowledge
It is unfortunate to learn that my fellow entrepreneurs lack financial knowledge. I’m not talking about advance knowledge. I’m talking about simple, basic, knowledge.
Understanding your balance sheets and financial statements are essential to run your business. Trusting them to your staffs is nice, but understand them yourself help you control risks, while giving you better view on your business.
When hard times hit, such as today’s recession, the financial knowledge is the one that make or break your business. Unfortunately, entrepreneurs often forget about this and realise the importance of financial knowledge when it’s all too late. I have to admit, this is my case, too.
I have to close my businesses due to lack of financial knowledge, and I promise that I will not let my business slips past me anymore.
I’ve been near bankruptcy myself and survive. I hope you survive, too, even thrive! It’s never too late - learn as much as you can about finance. You’ll see that, eventually, what you know will save you from financial adversity.
Ivan Widjaya
Finance is a lifelong education
*Financial Education leads to financial intelligence and the more we teach ourselves the subject of business and investing, the more risks is minimized and controlled. Click Here to Read More...
Being an entrepreneur is easy. What make entrepreneurship hard is because it involves money, either yours or other people’s.
If you play an entrepreneurship game - board game or computer game - you can risk your money rather easily due to the fact that it is ‘replayable’. If you lost, try again, and again.
In real life, the game is not ‘replayable’. Real life is a one way journey (unless you’ve already invented time machine!)
In real life, every money decision involves risks, and minimising the risks, unfortunately, need strong financial intelligence.
One last thing - in real life, minimising the risks through control mechanisms will eventually bring success or failure to you.
Having the right financial knowledge helps you averse risks and avoid bankruptcy.
Having the right financial knowledge keeps your money in sight, and every cent will go into or out from your pocket within your tight supervision… and control.
Where to seek the right financial knowledge
When I mention financial intelligence, I’m not talking about financial intelligence through formal financial education, i.e. in colleges. I’m talking about financial knowledge that is acquired through applied education - seminars, courses, mentorship and, of course, knowledge from getting your own hands dirty.
Formal financial education is important. But in my opinion, informal, applied education is more important.
Sadly, many entrepreneurs lack financial knowledge
It is unfortunate to learn that my fellow entrepreneurs lack financial knowledge. I’m not talking about advance knowledge. I’m talking about simple, basic, knowledge.
Understanding your balance sheets and financial statements are essential to run your business. Trusting them to your staffs is nice, but understand them yourself help you control risks, while giving you better view on your business.
When hard times hit, such as today’s recession, the financial knowledge is the one that make or break your business. Unfortunately, entrepreneurs often forget about this and realise the importance of financial knowledge when it’s all too late. I have to admit, this is my case, too.
I have to close my businesses due to lack of financial knowledge, and I promise that I will not let my business slips past me anymore.
I’ve been near bankruptcy myself and survive. I hope you survive, too, even thrive! It’s never too late - learn as much as you can about finance. You’ll see that, eventually, what you know will save you from financial adversity.
Ivan Widjaya
Finance is a lifelong education
*Financial Education leads to financial intelligence and the more we teach ourselves the subject of business and investing, the more risks is minimized and controlled. Click Here to Read More...
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