Alexa von Tobel, the founder of Learn Vest, gave up her studies in Harvard Business School to pursue her dream – to make a difference in the finance world. Today, all her efforts paid off when her business became one of the well-known and award-winning companies. How did she do it despite her young age? How young entrepreneurs these days can overcome the challenges of managing money for the success of business?
Don’t Put Too Much Funds
One common mistake of young entrepreneurs when starting a business is they invest over the necessary. Remember business is not a game where you gamble your money and rely on luck only to win. You have to take it seriously, use and harness the limited sources you have. One effective tip successful entrepreneurs recommends is to invest little of your personal savings. This allows you to be aware of your money and how to save it. If you are spending borrowed money, then most likely you will spend it carelessly putting your business at risk.
According to Hearts, Smarts, Guts and Luck written by Tony Tjan, most of entrepreneurs is motivated by the desire for a change and with a vision to provide satisfaction to customers. However, they tend to overlook it and not focus what is necessary for growth.
Spending your company’s money to tempting but non-so-important paths that you believe will bring you closer to your goals will do no good. Businessmen should understand they cannot do everything for their people and must concentrate on the task in hand.
Concentration permits you to complete the current task before going to the next, delivering your service or product to the marketplace for a short period of time, while maintaining unnecessary expenses low.
Surround Yourself with the Best
In building a business, you must hire individuals with the best skills to get your enterprise on the top. Be practical and employ responsible and outstanding employees. An entrepreneur must make use of the talents and skills of the people wisely.
Embrace the Worst
As a businessman, you always have to consider the worst scenario. If you believe you have done your best but still there is no progress, then give up. Make sure you have used up all your sources and skills before you say “I surrender” to the challenge.
Create a Business Plan
You don’t go to war unarmed, you need strategy in order to win. Making a business plan is an excellent road map towards success. It shows you what should be done, what is missing and what are your goals.
According to an expert, one out of five companies fall at their first 12 months, so as an entrepreneur you should take careful steps and make necessary decisions. He has to maintain the relationship among customers and employees while planning for the company’s future. Bear in mind, if the company falls down so are you. Be ready as the business world is a very competitive one to beat.