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Rich Entrepreneurs

Guest post by: Justin Timory

Article Overview: Knowledge on handling finances is important for entrepreneurs. It makes them more capable at running their respective businesses.

Rich Entrepreneurs

As pimps would say, “money makes the world go round.” Well, coming from a business perspective, it actually does. And I declare this without any bias or corruption. Moreover, I can confidently say that everyone who knows this turn out to be rich entrepreneurs.

See, money makes businesses. Businesses circulate money. This circulation boosts economies. Economies keep the world running. And when our economies are running well, there are more opportunities to create more money. It’s that simple.

Any elemental absence in this cycle would put a halt to everything in the world. Well, may be seas will still roll and trees will still grow. But my point is: everything we are, everything that we do, everything that we will be, every dream we have, will all be meaningless in the face of crisis. Crisis, in simple terms, is the mismanagement of money.

So it goes without saying that in order to become successful and rich entrepreneurs, those who aspire are expected to have a certain appreciation for money. But to emphasize, this appreciation should not be adulterated by greed. Otherwise, you are bound to fail. See, greed only compels you to hoard. When you hoard, there’s mismanagement of finances, and in the end, crisis. So in addition, successful entrepreneurs should also have a certain finesse for handling money.

Now, if you think you don’t and you are aspiring to be an entrepreneur, then you have got to start learning. You can’t survive in the field of business without any knowledge, whatsoever, in finances. To get you on your way, here are some tips you can refer to:

· Keep a good tally of your financial activities – what money goes in, what money goes out.

You can’t maintain a business if your expenditures cost more than your returns. If you have a record of the things you do with your money, you’ll be able to gauge whether or not you have the capacity to operate at normal standards, or tone down your cash outflows.

· Secure financial statements such as balance sheets and income statements

You can’t run a business without considering your assets and liabilities. A balance sheet will reflect your gains and losses for the business period. One thing that entrepreneurs should remember is that both assets and liabilities should be balanced. If not, it would imply that there is an anomaly in fund handling.

· Review previous financial statements and prepare budget plans for every accounting year.

This is done to avoid overspending. If there are still inventories left over from the previous accounting year that’s usable, you might as well cut down on your inventory budget. If certain equipments have broken down before, you can allocate money for the repair or purchase of new equipment. Just remember that you have to establish a budget on the premise of your previous expenditure, give a bit of allowance for emergencies and stick to it all throughout the year.

Rich entrepreneurs know how to handle finances. If you want to become one, then you have to begin involvement.

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Article Tags: handle finances, handling money, rich entrepreneurs



Related Forum Posts
Re: How To Be Rich - [quote="TheRainmaker":tst8wsa8]Sounds great. What exactly have you found to be eye opening??[/quote:tst8wsa8] The first eye opener was measuring wealth by your total assets 1 Million - 2 Million Pounds The Comfortable Poor 2 Million - 5 Million Pounds The Comfortably Off 5 Million - 15 Million Pounds The Comfortably wealthy 15 Million - 40 Million Pounds The Lesser Rich 40 Million - 75 Million Pounds The Comfortably Rich 75 Million - 100 Million Pounds The Rich 100 Million - 200 Million Pounds The Seriously Rich 200 Million - 400 Million Pounds The Truly Rich 400 Million - 999 Million Pounds The Filthy Rich Over 999 Million Pounds The Super Rich
Re: Take Action - This is a verse from a poem written by Felix Dennis one of the Britain's wealthest self-made Entrepreneurs. It hit the nail on the head that you need action more than anything Ideas? We've had 'em Since Eve decieved Adam, But take it from me Execution's the key. This is taken from his book "How to Get Rich"
How To Be Rich - I am reading a book by Felix Dennis "How To Be Rich" He is one of Britain's wealthiest self-made Entrepreneurs. The book is an eye opener. You need to get and read it. I am not advertising for him, I just love the book.
Re: Think Big, think Rich, think Millionaire, think Freedom! - [quote="bmueller47":2yq5059b]Rich people admire other rich and successful people. Poor people resent rich and successful people. (This is important, too — it seems to hold true among my friends.)[/quote:2yq5059b] Hi Beat, To build on the point you outlined, I would say that rich people typically think cooperation, while poor people think competition. Entrepreneurs should come up with creative ways in which they can grow with others in their industry, rather than try to put one another out of business.
Re: My 3 best business books - 1. Think and Grow Rich - Napoleon Hill 2. The 7 Habits of Highly Effective People - Stephen R. Covey 3. Permission Marketing - Seth Godin Think and Grow Rich seems more powerful each time I read it or dip into it. The 7 Habits not only offers some very effective ways to organize your life (which I have yet to master!), but also some great quotations and thought provoking statements including this by Nazi concentration camp survivor, Viktor Frankl: [i:2naxzsom]Between stimulus and response, man has the freedom to choose.[/i:2naxzsom] Seth Godin's Permission Marketing is a good read for anybody seeking to understand how to approach doing business on the Internet in the right way with regard to winning people's trust.


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