To read the first part, click here 

3. Build an asset around your business

The scale of assets in the financial papers of your business will matter the most when you look for an expansion of the venture a few years down the line.

Books on financial intelligence will suggest the same thing. Assets are things an investor or even a customer will want to look at in your financial records, not just the turnover. As mentioned by Robert Kiyosaki in his book Rich Dad Poor Dad, 'It is not about how much you make, but its about how much you keep.'

Time and again, look into your cash flow patterns and financial spending. Make sure, whatever money is being spent goes into filling that asset column. Everyone likes assets. How smart someone is will only be determined by the value in your asset column.

It is something that distinguishes between 'net worth' and 'not worth'.

Most common cash flow mistakes are exorbitant marketing budgets, instead of simple PR strategies, high employee costs, lack of automation and similar recurring expenses that create the same task and expense again and again.

It is also important to invest in assets that appreciate. When an asset appreciates in value, it will increase your net-worth effortlessly. It really boils down to the capability of an individual to determine what asset will appreciate and what will not.

4. Go with the wave

No one can go against the flow of nature and economic cycles. The best way to figure out an upscale market or a wave is to keep your eyes open. Read about the government's Budget, find out what is the primary agenda of the government. Research the spending and behavioural patterns of people around you. Know what they are increasingly talking about or spending money on.

Every business has start, growth, maturity and end phases in a cycle. These cycles are directly influenced by spending patterns of governments and people. What smart people do is build a business along the wave, grow it in an upscale market and exit it at its maturity.

The best way to get into any business is at the start of its acceptance wave. As the business and market grows towards maturity, it with faced with stiff and smart competition.


5. Bring magnets to attract masses

Magnets are smart and successful people. It is important to bring smart people into your business. It is one of the toughest jobs and a never-ending process. But convincing smart, successful and powerful people to be part of your business is worth it, no matter how difficult it is.

Once you find the right direction, it is often a better strategy to get smart people and work around their talent than to focus just on your own agenda.

6. Create a culture, not just a product

A human mind is one amazing creation. A mind can create and destroy. A mind can create a belief that eventually creates a reality. Trillion-dollar industries today like education, food chains, coffee, cheese, auto, software, real estate, aviation, etc are those which work in a culture and not just a particular product.

It is an ecosystem that closely works in tandem with its other components, creating a culture that cannot be destroyed in an instant. These businesses go deep into human behaviour and create a platform for intellectual exchange and socialising that has now become a part of our everyday life.

The author is a partner of Netz Capital, a venture capital fund and advisory focussed on global companies primarily in industries such as technology, infrastructure, real estate and green energy.


Source: http://business.rediff.com/slide-show/2010/jul/14/slide-show-1-six-great-tips-to-succeed-as-an-entrepreneur.htm