I’m convinced. My experience as a coach helping more than 8,000 entrepreneurs to turn their business into a company that generates millions, has shown me that there is no entrepreneur who has not felt trapped by his own business. Many times they feel that for more hours they work they do not advance; that the number of their affairs to attend to grows with the pressure and that, worst of all, they feel that they work all the time, but earn hardly enough. As a consequence they live in a stress bubble and feel the weight of defeat on their shoulders most of the time. The truth is that, after accompanying them in their growth process, I can tell you that many earn thousands of dollars, but they do not know what to do with them and how to use them to multiply their profits. It is not the same to generate thousands of dollars than to generate profits to have millions. Therefore, it is important that you know the 5 exceptional keys to make the best investment decisions and control your finances.
1.Build your identity as an entrepreneur.
When there is a business identity, there is an intention and decision to reinvest to produce something additional, versus when there is only the desire to work more to earn more money and spend more. It is not working hard today to rest tomorrow, because that is the mentality of an employee who only seeks to secure his retirement. Generating income can be done by many. Building a company can only be done by entrepreneurs.
2.Learn how to reinvest.
If you want your company to transcend in time, you must reinvest 80% of the profits for five consecutive years and the remaining 20% keep it as a reserve. This has to do with honoring the business and respecting the business future. In self-employment – which many call that being an entrepreneur just because they don’t have a boss to whom they are accountable – there is no separation between business and person.
3.Make sure that your investment returns to you.
The only rule to reinvest is that you always generate a return and strengthen your business model (that is, how you earn money in your company or know how ); what will finally translate into value and wealth: the true essence of a company and the focus of an entrepreneur.
4.Take control of your business numbers .
Knowing how much you sell will not give you all the elements to have absolute clarity of your business. To sharpen your sights and make better decisions, it is mandatory that you know your numbers weekly: your income, break-even point, margins and expenses and profits that the company generates. This without neglecting the time variable; that is, if it is a daily, weekly, monthly, semi-annual, annual measurement, etc.
Invest in coaching.
It is not about bringing water to the mill, it is proven that one of the best investment options –in fact one of the most profitable– is training through business coaching. Well, that will help you improve your performance as an entrepreneur in different disciplines: leadership, finance, marketing, sales, and operations, which – in the long run – will allow you to start on the path to financial, personal, and life freedom.