Dec 8 : There are an increasing number of Entrepreneurs going through financial struggles, because of poor planning and knowledge and let’s discuss the way out
The nascent stage of entrepreneurship is not the easy road, especially if one is a mid-life entrepreneur. Most have them have started their journeys by taking a dip in their savings and leveraging it to catapult their business forward. This calls for a sound planning and strong command over one’s financial assets which would assuredly help resolve expenditure, stress related to expenditure and negate the involvement of middle men (read taxmen) haggling the hard earned money and taking control over whatever little time the entrepreneurs have.
Not having a well paved path can lead to entrapment of the ventures who go back to the safety net of their salaried jobs but without any lessons learnt. These once enthusiastic entrepreneurs often end up blaming the market, the customer and external factors without realizing that the real change needs to occur within. Only if they had taken a hard look at their money and controlled their urge to splurge, things would have been different.
To avoid this conundrum, listed are the few strategies which will help mid-life entrepreneurs to move away from financial crisis towards financial abundance.
Creativity is directly proportional to the capital influx. In certain times if the entrepreneur experiences a dry financial spell, it is time to change the strategy and put creativity in full gear. The distinct element of being ‘out-of-the-box’ is helpful while it remains aligned to the industry and the business motive. This leads to combination of creativity and proactivity that can concord the perfect recipe for success.
2. Never Reject Monetary Help
It has been observed that people tend to reject monetary help with no conscience. It is in the nature of human to be sceptical about the compliments or help that because one does not accept and acknowledge that what he/she earns is a reward for their hard work and knowledge. Compliments often digress to negativity where the receiver tends to believe in the ulterior intention of the other party and create a disbelief over something absolutely trivial. Humans immediately reciprocate a compliment with another one as we do not like obligations. Same thing can be applied to monetary assistance. We are inclined to believe that borrowing funds sets a bad example and any monetary transaction is pushed away because human mind doesn’t allow one to feel worthy of it.
Unless there is a valid reason behind this understanding, one should not push away help of any sorts and this idea needs to be implemented with immediate effect.
3. Contributing Money
Quite often, people end up giving more funds than required. Why does one do that? The answer is recognition and appreciation. In one’s zest for adaptability & acceptability, it is accepted that respect and love can be bought with money.
However it does not work that way. By spending more, people create an impression that monetary benefit is something that doesn’t matter as much as it should and by adopting this reckless behaviour, people often pave path to more such opportunities. Nothing can be negatively drastic than that.
4. Be Grateful towards Money
In this time of online transaction and digital money, the feel of the actual currency is taking a back seat and earning money is no more a joyous option as it once was. By being grateful towards the earned money and understanding the value, not only entrepreneurs but every person will reminisce the value of every rupee earned and be more conscious of where it is being spent.
5. Understand Balance Sheets
Financial knowledge has utmost importance when it comes to managing money and being aware of the flow of money takes the cake in any financial planning. Buy a book on financial independence, play business games like Cash flow 101, make friends with financial planners, read financial papers and increase one’s financial literacy.
6. Stop Spending Recklessly
Money is equated with water. As always said by the traditional people in India, akin to water flowing through leaking taps money goes away faster than you thought. By undertaking a critical analysis of the money being spent and understanding the conjecture at which it can be optimized, the entrepreneur can reduce the chances of acute dearth of cash and can rely on the well thought measures to punctuate the entire money repository for various other purposes.
As I go through innumerable life coaching conversations with mid-life entrepreneurs, I find an increasing number of them going through financial struggles, because of poor planning and knowledge. Let’s be more aware about our future financial needs and take concrete steps towards becoming a rich mid-life entrepreneur.
– By VaibhavDatar
Author of Bestsellers Simplify your Life