Top Ten Lessons Entrepreneurs Can Apply To Investing
Before
becoming a Financial Advisor for entrepreneurs in Toronto, I owned,
operated and eventually sold two language schools. Like all small
business owners, I had to make the best use of my financial resources.
When I reflect upon the top ten questions that people ask me about their
financial affairs, I find they are not so different from the questions
entrepreneurs deal with in their business. In my Entrepreneurs Investing
Strategies Series, I will explore each of the Top Ten.
|
|
Entrepreneur Investment Strategy #7: Are We There Yet?
When do you know if your business has flourished?
S.M.A.R.T
business goals are Smart, Measurable, Achievable, Realistic and Timely.
First, make a plan, establish S.M.A.R.T. goals for your business (e.g.
number of customers, branding, sales, profitability and so on) and then
get to the hard work of implementing these goals so that you are on your
way. You should also set deadlines to achieve your targets and measure
progress towards completion. The milestones you set and see yourself
achieving are part of the thrill of entrepreneurship.
If
you get off track, you analyze, adapt and possibly recalibrate. With
this kind of goal setting, measurement and focus, you can not only see
the finish line, you can proactively reach your destination, whether it
takes five years, ten years or more. Commitment to business success
takes real passion, the ability to take smart, calculated risks, and
perseverance. Advice from professionals and fellow entrepreneurs assists
along the way. When there are significant profits left at the end of
the year that you won't need to reinvest the next year, your efforts are
paying off.
Investing
is not much different. Rare is the investor who has no goals. Set a
specific goal (e.g. savings targets) and define why you are saving and
when you will need the money. Once you've done that, the finish line is
clearly in your sights. Let's say you want to save $50,000 to pay for
your child's university education, and you want to have this money
available in 15 years. When we know how much you will invest each year,
the amount of risk you feel comfortable taking, and what the power of
compounding will add to the growth, we can then look at what investments
to use so that you are most likely to reach the goal. Tracking is easy
and as the 15-year deadline approaches; we can add more or reduce the
investment as needs be.
Do
you want to save up for a comfortable retirement affording you and your
spouse the opportunity to do the trips abroad that you sacrificed while
you built the business? Calculate what you'll need, start putting the
funds aside and investing them for the long term and watch your wealth
build up. Readjust as you get closer to those "golden years" to protect
the hard-earned income. Commitment to growing your wealth takes
knowledge, good advice and discipline. Your Financial Advisor is a key
player in your success because they have helped other people reach their
goals.
Commitment to
growing your wealth takes knowledge, good advice and discipline. Your
Financial Advisor is a key player in your success because they have
helped other people reach their goals.
It's just good advice.
|
|
Marylou Heenan, Financial Advisor
Assante Capital Managment Ltd.
Assante
Capital Management is a member of the Canadian Investor Protection Fund
and is registered with the Investment Industry Regulatory Organization
of Canada.
This
material is provided for general information and is subject to change
without notice. Every effort has been made to compile this material from
reliable sources however no warranty can be made as to its accuracy or
completeness. Before acting on any of the above, please make sure to see
me for individual financial advice based on your personal
circumstances. Insurance products and services are provided through
Assante Estate and Insurance Services Inc.
Using
borrowed money to finance the purchase of securities involves greater
risk than using cash resources only. If you borrow money to purchase
securities, your responsibility to repay the loan and pay interest as
required by its terms remains the same even if the value of the
securities purchased declines. Note: Leveraging carries its own risks
and is not for everyone. Talk to your financial advisor for advice on
properly managing those risks.
No comments:
Post a Comment