Financially Fit & FabuIous - C.R.A.F.T-ing Success: Developing a Strategy to Build WealthMonday, July 19, 2021
WHAT would you do if you had access to more money? Many persons would consider living out their bucket list desires. This may include a luxury vacation, a dream home acquisition, sending their children to the best schools while some would think of using it as capital to start a business.
However, for this dream to become reality, you need to develop a solid plan and think of a way to improve the earnings of your family. Think through the strategy you will use to increase your personal cash flow, which will lead to more savings, investments and your dream achievements.
Part of the planning process is projecting how you can start a new business or scale up over time. Here are some tips to get you going.
C- is for cutting
Cutting down on spending and investing in a new venture which can increase your cash flow is your first strategy. This may involve moving to a cheaper rental home, reducing spending on clothing or other discretionary items.
R-is for resources
If you personally do not have enough resources to invest in the new store, new restaurant of the construction project which you might be thinking of, there are several other options. These include small business loans and loans from family. Resources can also include free services including business plan development, which can be secured from government agencies that help small businesses and start-ups.
Financing can be secured from family loans, your personal savings, your local bank or credit union. If your project is “bankable,” that is if it has a high prospect of delivering returns, then you are likely to get the financing you need.
Taking on debt may seem like a challenge, but if it's done in an organised manner with professional guidance to acquire growing assets or embark on income generating programmes then it's worth exploring. Ensure you have a solid plan to service the debt and it could eventually build your net-worth. Added to this is the importance of investing in yourself, focusing on improving your skills, education and experience.
A -is for ability
In addition to capitalising on your personal skills and abilities in developing a new stream of income, you should also ensure you choose the best people as employees and partners on your journey.
Many dreams have been aborted because chosen partners had their own agendas which were opposite to the best interest of the project at hand and business goals.
F- is for focus and fortitude
Try to focus on the goals which you have set out in your business plan. New opportunities might arise along the way, but it is best to focus on putting resources into the venture which you have already started. Do not spread yourself too thin.
You will also need to apply fortitude and perseverance in going after your goals. Thomas Edison failed 1000 times before the lightbulb was invented. A plan which does not work initially only means it's time to change your strategy
T- is for timing
Product delivery must be timed to match market trends. Sometimes the idea you have is too futuristic for your community. When this is the issue, look around for other markets in which your product might be more appreciated. Timing is also important in product delivery. No matter how excellent the service which you offer is, if it cannot be delivered on time you will lose market share.
Other timely strategies include advertising or marketing your products and services. What you are offering is critical, but if no one knows about your service your business will slowly die.
We hope we have inspired you to put those plans into action and go after your dreams of owning a business. Happy planning as you put pen to paper and actively pursue your vision.
Shynelle Anderson is a licensed Investment Advisor from Scotia Investments Jamaica Limited.
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