Go big or go home. It’s a great mentality; an approach that says, “I’m here to conquer and truly change things, not make a few waves and disappear.”
Many entrepreneurs start businesses with the goal of making lots of money. It’s not the only reason to start a business, nor should it be the first, but it ain’t bad if you can get it. And there’s no shame in gunning for it either.
The problem with entrepreneurs is that they live that goal so absolutely they forget to plan everything else around them.
Specifically, many entrepreneurs ignore solid, financial planning — after all, you’re going to be filthy rich when Google buys your company, so why plan for your financial future, right?
For years, my financial strategy was to hit it big with my entrepreneurial endeavors and not worry about anything else. My startups didn’t have pension plans, and I wasn’t putting a lot of money away. Part of that was my own sacrifice to keep my company afloat – for the first few years I barely paid myself and when times were tough I was down to half salary. So there wasn’t a lot to put away…but when there was, financial planning for retirement wasn’t a high priority.
Times have changed. I’m starting a new company, Standout Jobs, which means throwing myself in heart, mind and wallet. But I also have a greater perspective. I know Standout Jobs will be successful, but I also know that it’s important to think about the long term future.
At The Power Within a few weeks ago, financial guru Terry Savage, spoke about the basics of smart investing. The simple act of putting some money into an RRSP every month starting at a young age, can pay huge dividends in the future. She wasn’t teaching anything new, but it did remind me of how important it is to have a financial plan that goes beyond, “sell to Google for billions.”
Every entrepreneur should think about the long term future.
It will give you a greater perspective on what you’re doing. It’ll force you to think more seriously and impassionately about your finances. You don’t want your passion for entrepreneurship clouding your perspective of how to be financially smart.
Being an entrepreneur doesn’t mean you have to be a cavalier, free spender with no sense of what’s coming tomorrow or thirty years from now. I hope you sell to Google. I hope you make millions. Even if you do, the fundamentals of smart financial planning and investing will always be critical; don’t ignore them.