Comments on: The Secrets to Entrepreneurship? Or More?

By: Shaine Mata

Shaine Mata — Wed, 14 Jan 2009 19:10:40 +0000

This is a great find. Starting out as a freelancer, again, I now see some potential problem areas where I could end my escape to freedom prematurely. Thanks.

By: Dan Massicotte

Dan Massicotte — Wed, 14 Jan 2009 13:43:53 +0000

Especially that last one. I would go so far as to argue that if your life plan isn’t figured out, the business plan won’t make any sense because you won’t know what kind of business suits you.

By: Writer's Coin

Writer's Coin — Tue, 13 Jan 2009 12:02:57 +0000

Love the bit about shortcuts and numbers. Think about the business being your child: would you really take shortcuts on raising your kid? I don’t think so.

By: Saver Queen

Saver Queen — Mon, 12 Jan 2009 17:06:04 +0000

So true. I learned the “money isn’t money until you have it” rule the hard-way, when my partner’s employer ran out of money and no one in the company got their monthly paycheque.

By: AJC @ 7million7years

AJC @ 7million7years — Mon, 12 Jan 2009 13:21:23 +0000

BTW: as Andee is quick to point out, you can go broke on either Gross Margin or Net Income … even Warren Buffett only buys companies that produce one OBVIOUS thing: CASH

Remember, in ANY market, cash is still king :)

By: AJC @ 7million7years

AJC @ 7million7years — Mon, 12 Jan 2009 13:19:43 +0000

Having made (many) millions from building (then selling) businesses across three countries, I feel reasonably qualified to comment:

I was lousy at the first one (numbers) but I can tell you that a quirky (and hard to find book) by a very interesting Aussie, Andee Sellman, will go a LONG way to fixing that problem for other aspiring entrpreneurs. Check out this video on his blog:

http://www.onesherpa.com/personal-finances/the-great-financial-freedom-myth-that-keeps-millions-broke

By: shadox

shadox — Mon, 12 Jan 2009 04:27:40 +0000

I agree with jreed – Net Margin is far more important than gross margin. At the end of the day, the only thing that counts in a business is how much money is left in the bank when all is said and done.

By: Gabriel

Gabriel — Mon, 12 Jan 2009 00:04:32 +0000

Another great post! It reminds me a great deal of a book I checked out from my local library – 100 ways to create wealth. Each tip was mostly a philosophical way to approach business – a business mindset, if you will. I found it quite inspiring, especially as I’m learning about entrepreneurship myself. I’ve just started a jewelry business, as well as two blogs. Thanks for inspiration, Trent!

By: Savvy Frugality

Savvy Frugality — Sun, 11 Jan 2009 23:39:51 +0000

You didn’t go into detail about #10, but I assume it has to do with “put family before business”. How many of us put off family obligations due to work? When starting a business, if the family isn’t on board with it every aspect of your life will suffer.

By: Michael

Michael — Sun, 11 Jan 2009 23:15:59 +0000

One of the best posts from you. I’m going to find
“scratch beginnings”. Thanks for all that you do.

By: Elisabeth

Elisabeth — Sun, 11 Jan 2009 22:31:41 +0000

I liked this post. I think your ideas are right on.

I also had an idea for you though – I was just looking at your “Most Popular Articles”. Some of them seem interesting, but I was just thinking – if you base it solely on the number of visitors, then aren’t they more likely to stay the most popular articles forever, just because more people are likely to visit them because they are listed here on every post?

I don’t really have a suggestion for a better way to do it. Just pointing it out.

By: Sean

Sean — Sun, 11 Jan 2009 21:51:07 +0000

There’s a concept in accounting called the “going concern assumption.” The idea is that you always assume, when looking at financial statements, that a company intends to keep operating indefinitely.

The same applies to personal finance. In every financial decision you make, you should assume that you are going to keep functioning, more or less as you do now, for the foreseeable future.

Thus, no shortcuts. Every decision you make needs to be looked at not only in its short-term impact, but long-term as well. You’re still going to be around, so why damage your long-term prospects for a short-term gain?

By: Michael Weber

Michael Weber — Sun, 11 Jan 2009 18:41:33 +0000

As I go through my journey in becoming debt-free, I’ve began looking at my personal finances like a small business. Cut out the fat, budget responsibly, and look at ways to increase income. I’m also focusing on keeping an eye on the long term goals. Good post!

By: The Personal Finance Playbook

The Personal Finance Playbook — Sun, 11 Jan 2009 18:10:56 +0000

As far as the ability to read numbers, I think the basics of accounting are essential knowledge to anyone trying to run a business. If you can read a balance sheet, income statement, and cash flow statement you are at a serious disadvantage.

I think of entrepreneurship as the ability to start a business…but once you start a business you need to have the knowledge to run it and keep it going.

By: 15 Minutes to Riches!

15 Minutes to Riches! — Sun, 11 Jan 2009 16:22:36 +0000

“Money isn’t money until you have it.”

It seems simple, but a lot of people sure tend to forget this.

By: Studenomics

Studenomics — Sun, 11 Jan 2009 15:01:32 +0000

I have to say that I agree totally with the whole forget about shortcuts idea. I have learned this the hard way through attending school full time and having to work during the school year. Money won’t come easy neither will good grades. You can buy all the get rick quick books you want or all the exam prep books you can find, but if you don’t put in the work you won’t get the results you desire.

By: Gardening 4 Life

Gardening 4 Life — Sun, 11 Jan 2009 14:51:47 +0000

Great post! It really does come down to that. I like the idea of running our personal finances like a business. With all of the technology to draw up spreadsheets, graphs etc. with little effort or money, you could really be creative in the process and make it look professional.

I do know the dangers of the culture part. Wow, we’ve had friends who are not only willing to spend their money, but they’ll have yours spent too if you’re around them long enough. Not just big ticket items, but the little things that add up like, “Hey, let’s meet for lunch.” We’ve had to make a conscious effort to be up front with them or cut ties. Living in certain neighborhoods can also clean out your pockets because of the pressure of keeping up the acceptable standards that area has set.

Thanks so much!

By: jreed

jreed — Sun, 11 Jan 2009 14:31:15 +0000

In small business, NET INCOME is your most important number…what do you have in your pocket after all the shuffling of numbers. A friend of mine is a “personal coach” and was touting her success this year in doubling her sales. The question is did you double your net income? Her answer was no, she actually ended up with less that last year.
True business is about making money. In todays economy, people are finally realizing this. Advertisers are now being asked not if their ads won awards or were funny but did the ad increase sales of the product?
A good boss looks at who is contributing to the bottom line and gets rid of the ones who aren’t.

By: Debbie

Debbie — Sun, 11 Jan 2009 14:28:43 +0000

This all seems like common sense. I’m always amazed by the vast quantity of people that just do not get this.