Wednesday, March 15, 2017

6 Valuable Lessons to Remember When Starting and Managing a Business

These days, more and more people are turning to entrepreneurship to reach their financial goals. Unfortunately, not everyone succeeds because they failed to keep in mind the important things they should do when starting and managing a business.

attendees of the seminar (that's me in the yellow shirt)
Recently, I attended an Ephesians Management Corporation seminar entitled Creating Wealth and Managing Finances held at the Alabang Country Club to further my knowledge on handling my personal finances and be wiser as an income earner.  There, I gained a lot of insights and tips from speaker Jose Feron "Dodong" Cacanando, owner of Moriah Farms located in Manolo Fortich, Bukidnon and founder of Semilya sa Kinabuhi, Inc., a foundation that aims to bring the Bible and the church to where people work -- in their businesses and in their farms.

Here are six valuable lessons he shared about starting a business and managing it from then on:

1. Always know and start with what you have. Disclaimer: I arrived late and didn't get to hear his explanation about this tip. But, I think this meant capitalizing on the things you already have and using them to earn money. In my case, this translates to me having a laptop and the ability to weave words which led to accepting writing and editing jobs from clients as well as blogging projects.

2. Work, work, work, work. And remember that while your income increases, you should be able to even lower your expenses. "In the past, there are less crimes because people were busy working," described Sir Dodong. "Work is a very important part of life. You get more money if you spend more time working. Additionally, do not spend money you do not have."

Sir Dodong is the author of books "Breaking Through: A Man's Journey to Fruitfulness"
and "Keeper of His Garden: Breakthrough Principles for Life and Business"
both published by CSM Publishing 
3. Set financial targets. "If you want your business to prosper, you have to focus on the profits," he advised citing the Bible story of Joseph who prepared for the impending seven years of famine in Egypt. Sir Dodong recommends to not only think in terms of 'income - expenses = profit.' "Set your profit target and know what you need years from now." For instance, preparing for your child's education early because that would entail big expenses.

4. Pay yourself first. "Because you want to buy your future," he reasons. "Bring down your expenses and have an 'income - savings = expenses' mindset."

5. Work on a budget by knowing your actual expenses and finding which of these you can further cut down. "Challenge your expenses!" encouraged Sir Dodong. "Look at the budget not to ask 'Are you on budget?' but to know 'What else can we bring down?'" If you're having difficulties in budgeting, he suggests going back to the basics and using the envelope system to physically manage your money. "This is still the best budgeting tool and I continue to use it." To learn more about the envelope system, read this post.

Sir Dodong also advises to remove 'leakages' or else the wheel of your life will become flat. "Leakages are vices like cigarettes and liquor, as well as regular cups of expensive coffee and even cell phone loads. They rob you of your capacity to create wealth!" Still, it's also not good to be always depriving ourselves of little treats or luxuries. So he clarifies that if you really want to buy something, learn to save up and wait until you can buy it. Do not make hasty or impulse purchases.

event poster
6. Regenerate. That means developing new abilities by building upon your current capabilities. For example, if you are good at cooking, you may want to venture into opening a small eatery first before deciding to operate a restaurant. "Start small. A business does not grow because of money but because of abilities. Use your savings to grow your means first. Later, your business will grow according to your abilities because opportunities come to those who are ready."

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