How do you make sure you have money in the bank so you can eat and pay your rent while you build your startup?
Learn to invest.
Yes, that’s right, LEARN to invest. No simple tips or tricks, just a journey that will take you many years but is well worth embarking on.
“Hang on a minute,” I hear you say, “I’m an entrepreneur, not an investor.”
You need to be both.
- Investing uses the same skills, analysis, and mindset that you will need as an entrepreneur. The skills you need to spot a good business opportunity are the same ones you will need to find a good investment. You might as well hone your skills in both areas.
- Investments can give you cashflow and remember “cashflow is king.” Startups take time, they are not always cashflow positive from day one. Having cashflow can pay your bills without you having to work for someone else. This buys you the time your startup needs to grow without you starving or running to look for a pay packet.
- Investing diversifies your risk. Starting a business is risky. If you have investments, you won’t have to start from scratch in 1, 2 or 5 years time if everything goes pear-shaped in your business.
- Knowing you have cashflow for your personal life will take some stress off you, especially in the early days when the business doesn’t have any. This will lead to better decision making.
- And when your startup makes it big, like you always knew it would, and you sell it for 25 gazillion dollars 🙂 you will know what to do with all that money – if you have learned to invest.
Take one step today to learn more about investing. The learning is a lifelong journey.
If it is a new one for you, here are some good places to start:
- Read Rich Dad, Poor Dad by Robert Kiyosaki
- Play the Cashflow game for free online
Join the ConversationWhat resources have you found invaluable for learning about investing? Share with us in the comments. Or use them to create a little bit of extra motivation and accountability to get your action task for today done. And I would love you to join me on Facebook or Twitter. Image used under Creative Commons license courtesy of TaxFix