Is the entrepreneur synonymous with being a financially successful person? Yes, but only if entrepreneurs are focused on today’s financial industry and can use investment and credit to their advantage. If you also want to know the secrets of business success, read our new article on Five Characteristics of Financially Successful People!
Good luck and money: 5 basic things to know
A financially successful person is someone who earns over… 1000 euros a month? Maybe more? In fact, the level of monthly income does not matter, money spending habits and the ability to make money out of money are more important.
Financial skills are useful for individuals and entrepreneurs alike, but financial literacy is crucial for the latter. If a salaried employee receives a fixed amount of money each month, then the entrepreneur must ensure both salaries, profits, and a sound financial situation for the company. How can we achieve this? We have found five key recommendations:
1. Don’t be afraid of money
No matter how paradoxical it may seem, people may, for years, doubt whether or not to take advantage of a variety of opportunities that quickly appear and disappear. Many choose stability rather than risk, and in some situations such a choice is justified. But as a financially successful person, we think of someone who has managed to get out of the “better for less but safer” attitude.
In business, this attitude is particularly disruptive because competitors are asleep, and customers early or late choose a provider of goods or services that is willing to take risks, invest and win.
2. Manage income effectively
Every entrepreneur knows that profits need to be reinvested, not only to pay lower taxes, but also to gain long-term benefits. Every industry needs to develop its business and invest a significant amount of its profits in new technology, employee training, participation in various projects, and so on.
Simply leaving money in the account can do no good, so you have to divide your income into multiple segments and find a way to use it.
Although universities and various business schools provide a good foundation, learning how to handle money is only possible through practice. History knows world-class entrepreneurs without a high school diploma, which demonstrates that self-education today is worth the gold. The business and financial world is changing day by day, and successful people are the first to notice new trends. The more you know, the easier it is for you to turn even seemingly unfavorable news into your favor.
4. Not to stay within one industry, one city, one country
Business experts note that one of the biggest disadvantages of Latvian companies is the lack of export orientation. Selling a product or service in your own country and in a well-known industry seems easier and less risky, but in reality, it is easy only in calm market conditions.
Economic crises hit hard-for-companies, businesses focused on a single service and a very narrow clientele. Financially successful people know that ambition and growth are a prerequisite for viability.
5. Increase money
Business provides a unique opportunity to make money not only through the production of goods and services, but also through financial transactions. Investments and business loans are the best friends of every entrepreneur, but in the small and medium business environment it is still believed that such solutions are only suitable for market leaders.
In fact, it is precisely active investing and attracting external financing that distinguishes a simple entrepreneur from a financially successful entrepreneur with high growth prospects.
Investing and lending to business : the key to financial success
Thanks to the development of the fintech industry, investment has become more accessible and easier nowadays. Loan investments, which allow both natural and legal persons to become investors, are widespread. Latvian residents and companies registered in Latvia can invest in loans on various Internet platforms, such as DoFinance.
Internet investment has a relatively high rate of return and relatively low risks, as many platforms, including DoFinance, offer an investment repo guarantee. If the borrower delays the loan or does not repay the loan at all, the investment platform redeems the loan and returns the full amount of the investment to the investors. Thanks to this approach, investing in loans is a good choice for the first steps in the investment industry.
Another indispensable characteristic of a financially successful person is the ability to borrow. However, here we would like to remind you that a new gadget loan and a business development loan are two fundamentally different services. Business loan is not for private consumption but for business growth.
External financing is particularly important for companies that are just starting to conquer the market, and some non-bank lenders, such as Spin Lender, offer loans specifically for small and medium-sized businesses. The limits of Spin Lender credit limit are equally suitable for small and large business goals, and applying for credit and getting money is done electronically – is it hardly possible to make it even easier to raise funding?
Our conclusion – if you want to become a financially successful person, do not be afraid of the opportunities that nowadays regularly knock on the door. The business world is not risk-free, but it is one thing to risk the family budget, and quite another to plan your business spending responsibly and make the most of your profit opportunities: investments, loans, projects, etc. Follow the examples of successful entrepreneurs and dare to achieve more!