Do Business Better

18Know Money (Or You'll Have No Money)

I routinely have conversations with people who want to start their own business. They're so excited as they describe their concepts. They're frothy with ideas and enthusiasm as the venture hatches inside their head.

I listen as the aspiring business owner describes his or her creation.

Then I ask two questions:

1. “Can you go six months without making any money?”
2. Are you prepared in the next 12 to 24 months to not only not earn any income but also plow saved money into your creation, if necessary?”

This is where I lose most of the theoretical entrepreneurs. They say, “No, but my idea is revolutionary… . Nobody is doing this.” Or, “Didn't you hear my business concept? Don't you think it will work?”

It doesn't matter whether or not I think it will work or if the idea is revolutionary. Your idea might be the most amazing idea that's ever been conceived. Doubtful, but maybe. Whether it is or isn't an idea bordering on genius doesn't matter. What matters is this: How are you on the subject of money?

The Money Reality Check

Ideas and enthusiasm are the lifeblood of entrepreneurialism. The point isn't to squash a person's creativity or bash anyone for their enthusiasm. My point here is to clearly communicate the importance of a money mind.

Whether you are an employee considering a foray into entrepreneurialism or 20 years into running your own venture, money matters.

A big part of doing business better is managing money better. Starting or expanding ...