17 Entrepreneurial Mindset And Business Logic (Part 1)

Note: Tulisan ini adalah terjemahan Basa Enggres bebas dari artikel ini

Maybe your forehead will be a little wrinkled when reading the title above.

~17 entrepreneurial mindsets and the business logic~

"What do you mean with that sentence, Mr. Izal?"

OK. Before I explain, let us see the narrative below.

For example, one of my friend (named is Andi) asked me:

• Andi: "Hey Izal, if I have money 1.000 dollars, what is the right priority for that money?"
• Answer = For business capital.
• Andi: "If I have money 10.000 dollars, what is the right priority for that money?"
• Answer = Business capital
• Andi: "If I have money 100.000 dollars, what is the right priority for that money?"
• Answer = Business capital.
• Andi: "If I have money 300.000 dollars?"
• Answer = Business capital.
• Andi: "If I have money 500.000 dollars??"
• Answer = Business capital.

"Hey buddy, even though if I already have 1 million dollars???"

Answer = fixed for business capital!"

"Hhhh,,, if for example, my money is already 2 million dollars is it still for business capital hey Comrade????! "

Answer = Yeah !! Still for business capital!!

(Note: Capital is here in the sense of cash flow, which is capital that has been 'spinning'/'moving').

My friend then protested:

"Why do have so much money like that, but still answered for business capital? What about to buy a house and have a new car? What about vacation? Funds for Shopping? The cost of traveling abroad?"

"Useless! I have a lot of money, but it can't be used for fun!"

One more thing: what about my prestige!?

The answer is===>  This is because of an entrepreneurial mindset and the business logic.

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Not understand yet? Let's continue to read to the explanation below.

There are 17 Mindset and business logic That is recommended for the perpetrators of the attempt. Among them the following:

#1. Don't too soon to convert the results of your efforts into real assets.

When your efforts begin to 'squirm' with progress rapidly, then try to enjoy the process. Continue to multiply stock of merchandise, opening new store branch, develop business wings by opening another sector of the business.

If you intend to be 'impressed' prestigious (because it has a new vehicle), you could rent a car. Example: like Grab-car, Go-car or other car services rental in my country (Indonesia), then of course in your country too have the same function. You can be delivered wherever the destination you want to go.

And you won't need to headache think about issue prestige. What is the reason?

Because, if you're already a successful entrepreneur (and your business is developing very rapidly), then other people will not be want to know about your car (own or rented car). (which is why people who are rich, usually they don't think about prestige issues).

(Note: the above narrative is based on culture in my country, Indonesia. People in my country generally still prioritize prestige issues. Maybe in other countries, you have a different culture. And this article is one of the criticisms of less good culture in some people in my country).

Back to topic.

Therefore, you should not overthink about non-important issues as above (prestige issue). You better focus on playing your cash flow. To be developed again into a new business. And this method will feel more fun (if you are the type of true entrepreneur). And in the end, you can help and turn an unemployed person into a super busy person. What is the cause? Because you have opened jobs for them (to take care of various your lines business).

#2. There are some people out there, about the new vehicles, gadgets, style, and prestige, it's the number one for them. Important!

But pouring capital 1.000 dollars for the sake for pioneering and build their business, need thinking for a long time. While the latest smartphone a worth 1.000 dollars, he is willing to pay in installments.

This is a mindset that the upside in my opinion. In mindset and business logic, continue to enlarge business capital, and cash flow must be a top priority. The current money continues to be developed so that the larger, so that can expand the business wing in various other sectors.

#3. Traits of a successful business like people who have many children. If the primary industry (first business) has advanced, then he can give birth to the company of second, third, fourth, etc.

Well, if the first business was enough to fund a family life each month. Or even enough to support your life each year, then the results of 2nd, 3rd, and 4th business for other things.

Therefore, many merchants and businessman who successfully implemented this mindset, in reality (yes! in fact) they have been saving up assets whose value continues to be spun.

What is the reason?

Because when one business has been snowballing (and going forward), then some of the results of the net profit may be used for purposes of household expenditures, and some of the remaining other to be played again (for a new business). The 2nd business eventually also advanced, and the results can be developed yet into business to 3, 4, etc.

Now, all the business you have is 'savings' whose value can continue to spin. Compare if you ' save ' money in the form of buying a luxury car (new release), surely the value (asset) will decline over time. Correct or not?😀

#4. If you can manage the business well, and already runs in quite a long time, then $200.000 cashflows will be able to give you an income of around $10.000  - $30.000 each month.

Entering the 3rd year, that money ($ 200.000) had come back to you (from the business results throughout the year before). Well, that business results you can be used again for another business opening capital. And is when the moment the people will start to see you busier.

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#5. The secret key to the success of the business is actually how do you serve and always provide the best value to the buyers/customers/users of the services.

So others are finally willing to spend money to pay for your product/service. Therefore, do not feel surprised if you look at the buildings that are increasingly Standing tall in Jakarta City Center, Kuala Lumpur or Singapore. Yeah! Because those who are in it have service, core, the best organization and neat. That makes people willing to wear their services and buy their products. The key is to buy and sell, then later broker, only three that's it.

#6. The power of financial capital is indeed necessary. But if it is not backed by a clear decision, as well as the support of human resources that is good (management), it can damage and decrease the value of business capital — a simple explanation: money run out.

If you've seen the people who have long manage the business, and eventually his company became large. It could be because she got a loan from a bank, or get an injection of funds from the other party (his relatives for example). Or it could be that the initial capital comes from personal money and only a small amount (not loans), but his business could be great because he was able to manage their business correctly. 

Because, actually capital can be increased by itself, along with the profit that is kept/set aside to be returned to the cash flow. So do not ever assume that if you have significant capital, then surely the business will be successful. Not necessarily!

Do you want to know the next explanation? Look forward to the following article (part 2) which I will publish soon. ☺

UPDATE!

Part #2 Please click Here