When money is involved there is risk. Whether you’ve decided to invest or start a business, you’re betting on your skills and knowledge. In order to succeed you need to make the right choices and take the proper advice from the ones that did it before you. Sometimes others’ mistakes are more valuable than a thousand books, so here are some tips that come from common errors.
Know the market or business you go into. Never enter an area where you know nothing about, if you intend to spend money on it. You’ll surely make some mistakes that will disappoint you and make you lose money. Before acting on anything, learn as much as you can on it, ask your friends that did something similar or hire a professional to teach you what you need. Better you spend something in the beginning on information than spend more later on mistakes.
Start low. Do not invest everything you have from the start, at least not in the money department. Invest time and knowledge, study the market and see what competitors you have, feel the reality of the financial movement, but wait a little before putting all your money on the table.
Don’t get emotional. This doesn’t mean that you should not be happy if you succeed in what you’re doing, but don’t make decisions when your emotion levels are too high or too low. This is where many make mistakes. The money and the feelings should not mix or there will be loses. When you’re too happy, full of yourself or too sad, frustrated, then your mind changes perspective and you make different decisions. This is where “make business with a cool head” expression comes from.
Expect some mistakes. Be prepared for some loses. You won’t be right all the time, and it shouldn’t be fun either. The market is very volatile and sometimes the unexpected happens. Take it like a man (you too ladies) and go forward. Even if other people’s mistakes are a very useful tool in improving your business, there is nothing as valuable to your future decisions as your own errors.
So, when starting a business of your own or you begin making investments, you must know that things won’t be easy, there will be good times and bad times and you’ll work a lot more than you expect. Here comes the last tip: love your work. Before starting anything on your own, see if you like it. It is crucial that you’d be enthusiastic about it, otherwise it will be hell on earth for you and eventually you will fail.