Frequently Asked Questions
Aspiring entrepreneurs and business owners should work towards developing a ‘circle of competence’ – meaning that they should focus only on their area of expertise, investing within the limits of that circle. This ‘circle of competence’ could be a particular industry, a type of business model or asset class, an investment style, or any other area or topic of expertise. Whatever the topic, the circle should be well defined ahead of starting a new business venture.
Aspiring business owners and entrepreneurs-in-the-making should learn to spend less and to save more. Before establishing a new business, build up some savings by setting aside a certain amount of money from your monthly income, placing it into a separate savings account before giving yourself the opportunity to spend it.
Do this religiously – just as the government takes its taxes – to ensure that you spend less and save more. In the beginning it is better to start small, building savings regularly and consistently. Concentrate on the smaller, day-to-day achievements, leaving the big, overarching goals for a later date.
Building a reputation as a trustworthy, reliable businessperson is another crucial step towards success in business, so make sure that at every stage you are forging strong and positive working relationships.