What are your financial approach in the barber business?
Today we will be talking a lot on the financial part of starting a new business. We are here again with the wonderful Mr. Shatiswaran to help each of us by giving some useful advice on how we can be financially successful in our businesses. Also, if you’re wondering who Shatiswaran is, please look at some of out previous post to find out more about him.
- What’s your own investment philosophy?
First of all, I want to invest something that is meaningful to me, something that I enjoy, something that I know is going to keep my interest so that I’ll want to continue to follow it. Like in my business, I invest on my marketing efforts and equipment because I know that will help me get a return on investment.
2) What financial goals do you suggest I consider as I start my business?
Get out of debt — completely! Anyone can do this, regardless of their income level. Although the purpose of that debt may seem normal at the beginning, it’s no less a drag on your income as time goes on. But when you got rid of them, you will have full control of your income and that will leave you with more money for savings and investing. Most startups fail for many reasons, but one is far more common than others — running out of money. You need to know where every single dollar is coming from and where every single dollar is going. If you don’t stay on top of your cash flow, you are going to put your business in a very dangerous position.
3) How do you measure financial success and is there an example of someone in your life who has achieved this success?
I think for me being free from any sort of debts is how I measure my financial success. Without debts, I would be able to save a lot of money for many things, maybe retirement. I think my dad is an example of this success. He has done all he can to make sure that his money is going the right way. He has advise me on a lot of things which I am applying into my own business.
4) What financial obstacle have you encountered and how you solve them?
Probably lack of discipline. Without discipline, it’s difficult to build wealth. In fact, it’s impossible to get rich — slowly or otherwise — if you spend more than you earn. I knew I had to fix it so I make sure that I keep track on my spending and improve.
5) Is there any other piece of advise you would like to share with us regarding this matter?
Planning. Planning is mostly viewed as a time consuming and only beneficial to large companies. But planning is actually just as critical for a one-person start-up company operated out of a home. Planning helps you understand and evaluate your financial position. Planning helps your business use resources efficiently, with as little wasted time and money as possible. Planning can reduce the time it takes an early-stage of your business to reach profitability.
