“Don’t waste a good mistake, learn from it” – a piece of wisdom from popular money guru Robert Kiyosaki.
But not only should you learn from your mistakes, it is also wise to learn from the mistakes of others. Here are some important lessons that business owners have learned from the terrible experience of losing money.
1. Get a mentor – and be careful when making your choice
Having an experienced adviser is not optional. It is one of the most vital decisions you have to make as a business owner or investor.
Experience is the best teacher. If you can have at least one adviser and add their experience to your own, you significantly boost your lessons and speed up your learning process.
Learn from all the questions you can think of to ask, especially in the areas that you consider your weakness.
2. It is okay to commit mistakes
Though mistakes can be distressing, they are not lasting. Some people can be so scared of committing mistakes that they avoid taking any risk at all. It is okay to take your chances on calculated risks because, as you know, the higher the risk, the higher the return. This is particularly correct in investing.
Many entrepreneurs will tell you that they wish they have committed mistakes earlier. You can learn early from your mistakes and make the most of the lessons from those mistakes.
It is a fact that the people who committed the biggest mistakes, turned out to be the most successful, because they learned essential life and business lessons from those mistakes.
3. Be accountable for the consequences of your actions
The common reaction when losing a significant amount of money is to look for something or someone to blame. You point the finger at anyone other than yourself.
Other factors may be the culprit for the loss, but take on the main responsibility for it. It may not feel good for your self-esteem, but moving past it means that you’d taken on the task of how to offset it. By doing this, you will mature quickly.
4. Watch out for opportunities
Losing money does not only include the loss of cash on hand. It could also include the failure to take advantage of opportunities.
New trends are always surfacing, so you have to be aware of these. Have funds ready so you can invest when a good opportunity arises.
It is also worth considering hiring a full-time broker who can advise you on which risks and investments to take and which ones to not.
5. There is no quick way to make money
You will be disappointed if you think that there is a magic formula when it comes to making money. You know that get-rich-quick schemes are out to scam you.
Don’t be obsessed with the idea of getting rich but it becomes your life’s goal. Don’t forget that money can’t buy the most important things in life, like family friends, health, honour, personal values, and so on.
6. Work hard and work smart
It is nice to have money to buy the things we want. But remember that it doesn’t mean that you have to forget about your business dreams if you lose it.
Meet the challenges that come your way. If you fail at some, press on. Learn from your mistakes and those of others and try again, this time as a wiser and more motivated individual.
One of the best mentors that you can have is financial experts like experienced accountants. If you are in need of one, contact PJS Accountants. We offer accounting and other bookkeeping services to individuals and companies, big and small. We have the experience and expertise to provide intelligent financial advice to grow your business.