There are many ways to build a thriving business, but all successful entrepreneurs share a few common habits. While some of these traits are obvious, others might take you by surprise. And they all have real-world investment relevance. 1. Successful entrepreneurs set SMART goals It goes without saying that smart entrepreneurs set SMART goals. SMART is an acronym which refers to goals that are Specific, Measurable, Agreed upon, Realistic and Time-based. Smart entrepreneurs know that it can take a long time to build a business and even longer to make real money. They have cash flow plans and sufficient liquidity to cover their basic overheads for a couple of years. What can we learn from this as investors?
Successful entrepreneurs don’t bluff, and they’re honest about their shortcomings. They incorporate strategies for overcoming their personal vulnerabilities into their business strategy, and in so doing foster trust with clients, suppliers and – significantly – staff members. This creates a safe base from which to operate. A great example of entrepreneurial honesty is the recent admission by Dara Khosrowshahi, the new CEO of Uber, that he is fearful of his ability to succeed in one of the most challenging jobs around. Despite it being regarded as one of the most successful market disruptors to date, the reality is that about 50% of the cost of every trip you take is subsidised by Uber itself, using some of the stockpiles of cash it has from its venture capital investors. What can we learn from this as investors?
Consistently great entrepreneurs never attempt to do business they don’t understand, even if they’re excellent at delegating and employ professionals with superior knowledge and their own great ideas. Understanding a business includes understanding the ins and outs of the industry, and being aware of your capabilities, competitors, limitations and priorities. Highly successful entrepreneurs know that, at the end of the day, they are personally accountable for all their investment decisions. What can we learn from this as investors?
The good thing is that we’re all entrepreneurs. We’re all creative, adaptive survivors and we all can make SMART investment decisions for long-term success. Investing in unit trusts is an easy way in which to use goal setting, honesty and limited knowledge to our advantage. There’s a large variety which all cater to different (and specific) goals. There are those geared for shorter-term investing, including money market and bond unit trusts; and those geared to long-term growth including local and offshore equity unit trusts. As ever, the age-old principle of time horizon-based investing and diversification applies. When it comes to honesty and lack of knowledge, unit trusts provide peace of mind as they allow investors to relying on highly-qualified and experienced portfolio managers who have in-depth insights into choosing the best assets for a specific portfolio. To set up an appointment with our Financial Planners to assist in your investments planning with our Financial Planners, please contact Kevin, email: invest@daberistic.com tel no: (011 658-1333) Source: Prudential
0 Comments
Leave a Reply. |
AuthorKevin Yeh Archives
January 2025
Categories
All
|