An intense desire to make important decisions is what motivates certain people to try their hand at entrepreneurship. During this voyage, it is quite common to come across a sea of information. These may spin your head and create insurmountable doubts regarding business, investment and debts. Whether this is your first attempt at entrepreneurship or you are an old dog, doubts and thoughts will hit you like an avalanche.
Five doubts of entrepreneurs regarding business, investment and debts
1. “How do I pay my debts?”
First of all, try to get out of the debts by selling off unused liquid assets before investing into a business. Debt often leads to bad credit if you do not make timely payments, and bad credit is an archenemy of investment.
Even if you were to receive seed funding, the investors would first run you through a credit check. If the results are unsatisfactory, you may be denied of an investment altogether.
Organise a payment plan with a trusted and licensed Wealth Manager or Financial Advisor, and stick with them. Wandering off to more than one professional might cause more confusion than you might think!
Clarify to your creditor institutions exactly what is on your mind, and how you plan to pay them back. Depending on your case, they may extend the grace period or come with a favourable payment plan that is manageable for you.
If you are obtaining a new loan, make sure it does not cause any financial burden or interfere with your ambition.
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2. How to deal with my anxieties?
“Do not try to take a step higher than your leg.” Know your physical, mental & emotional limits when investing into something. Before you start, set how much money and time you are willing to spend.
Do not be fooled by your expectations. Bear in mind, that the time for things to happen is usually much longer than anticipated.
Successful entrepreneurs manage their fears and anxieties in a better way and do not allow any disruptions. There is no magic formula for this, but it is worth considering and remembering what has been achieved and do not lose focus of the future goals.
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3. What to do when my partner has a suspicious attitude?
A partnership is a union founded on one thing: Trust. There are several ways to differentiate & protect your assets.
Remember, if there is any unruly behaviour coming from your partner, then the best way to deal with it is to discuss what is happening and find answers for a better understanding and resulting solutions.
If such behaviour persists, it is better to break away from the union than putting your career in jeopardy.
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4. What risks can digital technology bring and how should I protect myself?
Internet risks are vulnerable and continuously growing with time. They range from the hacking of company files to legal aspects associated with the use of technology, such as software license agreements.
There is many IT and Cyber Security service providing companies that specialise in mitigating these risks. As well as, law firms who hold expertise in cyberlaw and digital copyrights.
You can also opt for custom made software instead of off-the-shelf software. It is the best way to maintain confidentiality and display an organisational seriousness concerning the services that your business offers.
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5. What is initial capital?
It is the working capital needed to begin the activities of a business and “run” operations until you generate enough revenue to balance the absorbed investment.
A faithfully and rigorously followed plan of operations results in a positive outcome. One of the attributes of a winning company is its flexibility to adapt to changes in the market.
Furthermore, undertaking this arduous journey contains sacrifices. Before you step foot into entrepreneurship, it is better to talk it off with family members and make sure everybody is on the same page.
Lastly, predictions and assessments will help your business in a major way. A good predictive analysis study will tell you how things will be during the investment period. What ups and downs you might encounter along the way and what sort of contingency plan should you have?
The answers to these questions will bring stability and mental comfort, which are fundamental in the subsequent periods.