It’s now simpler than ever for entrepreneurs to launch new businesses because to technological advancements and employment initiatives.
The current economic climate is providing serial entrepreneurs with the chance to launch businesses, grow them to profitability, sell them off, and then restart the cycle. In the process, they’re also giving their method of wealth creation a fresh perspective and providing some insightful advice for wealthy people who wish to emulate their success. Serial Entrepreneurs Venture and Venture Again (See also:
They’re Changing What They’re Doing
It makes sense to invest money in the market if you want to establish a strong financial foundation. Stocks, mutual funds, exchange-traded funds (ETFs), and real estate investment trusts (REITs) are all tried-and-true ways to get returns that are higher than those available through savings accounts or certificates of deposit (CDs). Bonds, one of the safest investments, even find a place in the portfolios of sophisticated investors who desire to balance risk. (See also: Diversification’s Importance.)
Serial entrepreneurs, however, rely on the businesses they are establishing to generate the wealth they desire rather than on market returns. That doesn’t necessarily imply that they aren’t making any stock market investments. Just not as their main strategy for boosting the size of their asset base. So how do they accomplish that?
The typical entrepreneur develops a brilliant concept, uses it to start a business, and then invests time in expanding it to the desired level of success. Serial business owners, on the other hand, establish a company, then either transfer control while maintaining ownership or sell it for a healthy profit. They are taking charge of their financial future by repeatedly doing this as opposed to leaving it up to the whims of the market. (See also: How Entrepreneurs Make Money: Why, Where, and When.)
What Investors Can Learn From Them
Although starting a business is not something that just anyone can do, investors can use some of the fundamental strategies that successful serial entrepreneurs use to their advantage. Here are some pointers for developing a serial entrepreneur mindset if increasing your net worth is one of your objectives:
- Get Professional Advice: Growing your money and managing a business are both challenging tasks, especially for high-net-worth entrepreneurs. based on the 2016 U.S. According to the Trust Insights on Wealth and Worth Survey, 69% of company owners use several financial consultants to help them make decisions about their businesses and personal finances. Consultation with a financial expert is a crucial piece of the puzzle if you’re devoted to bolstering your financial foundation.
- Understand Your Investments’ Liquidity – Knowing how liquid or illiquid your investments are is essential to developing a smart investment strategy. In America More than half of the business owners surveyed in the Trust survey stated they anticipated a significant liquidity event within the next three years. 37 percent of respondents indicated that they were collaborating with their financial advisor to plan for the tax ramifications of these events. As an investor, you should be worried about how decisions like selling stocks may effect your future financial prospects.
- Have an Exit Strategy. Serious serial entrepreneurs must have a well-thought-out exit strategy. This rule also applies to your investments. Regardless of whether you follow a buy-and-hold strategy or are a value investor, you must know when to sell a particular stock or mutual fund. If some of the assets in your portfolio start to lose their appeal, you can be setting yourself up for a loss if you don’t have an exit strategy in place.
The conclusion
Serial entrepreneurship has some disadvantages. After all, most newly established firms fail. For investment, the same is true. It can be hit or miss most of the time, but if you’re ready to examine your portfolio from a different perspective, it might result in a larger reward than anticipated.
