Economic realities of the Entrepreneur

30 Oct

Economic realities of the Entrepreneur.

Everyone is an entrepreneur.
A lot of people are too scared to put the work in. Strong words but salient concepts.
In my new series here at Moov Magazine I will embark on a journey with you to unravel the entrepreneurial journey.

A lot of people are scared in this day and age. In this market, in this economy, people feel they have no way out. They don’t. believe there is a way out. I think that’s fool hardy. Its lies and misdirection fed to us.
The simple truth is economics are irrelevant. The future, your future is in your hands. Are you aware that more millionaires have been made in the great depression and the great recession we are in now? Well its a fact.
My question to you the reader is simply What do you want?
What do you expect?
What are you going to do?
Until you can answer these you are lost.
However I’ve got some great basics to start with.

-Personal finance vs business finance.
As an entrepreneur there is one huge mistake a lot of people make- using their money and credit to make an empire. Never use your money. Set up an llc, S corp or other such venture. Why? It protects your assets. It saves your credit and your dollars. There is honor in standing by your risks. And there is greater honor in handling business ventures as an adult. I personally won’t use an S corp as it still leaves me with liability. However you choose your safe haven- but choose you must. Also why not have 5 corporations? Every idea you have is worthy of its own respect and llc et al. Make it happen.

Avoid negative debt. Sounds foolish and opposite I’m sure but hear me out. Debt is not needed but can build an empire. See America. Taking on a reasonable amount of debt to build your business is smart. Use that debt to get the tools you need not the Benz you want. Debt will expand not detract if your business model is right. The only question is will you make it right or dream it wrong.

Credit is funding that can be found from multiple sources. What’s better is it doesn’t always have to be paid back! You can literally build your business on the backs of others with no downside. Now this isn’t always but it is definite. There are many methods of procuring funding. Do your due diligence and you will find state, federal, and private funding as well. Facebook had numerous private investors put a lot of money into them. And now with the advent of kickstarter and its ilk we can all find credit.

I’m going to end on a non-financial note. Success isn’t being a billionaire; its being Trump. Now I know he is a billionaire but hear me out. Trump has had failure after failure. Been bankrupt or close to it twice or better. And yet he keeps coming back. He has a diversified revenue stream and a successful mainstream that few of us even dream of. It wasn’t his money, it was his will. His tenacity. Success is a journey not a destination.

Let’s meet along the road.

Tony L. 3rd.

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