Its time to get real.
There is no hope. And if you have hope, you shouldn’t. Hope will make you strive for ridiculous and unachievable goals. That whole “Shoot for the moon and if you miss at least you’ll land among the stars” thing, that’s bull. Do you think that’s what NASA said before they launched the Apollo missions? No, because that’s insane. They miss, the astronauts die. There was a whole Tom Hanks movie about it (it was really good, you should see it). But don’t rely on hope…
Instead, make a plan and stick to it. When planning, you need to set a “red reality” mindset before you launch. Financial plans need more than a break-even analysis, I’m talking embrace the worst case scenarios so you can set realistic expectations. Then once you begin operating, you can inherit a “green growth” mindset. Yes, those clever terms are entirely made up as well, but they sound catchy, don’t they?
Once you’ve snuggled up to the idea of all the ways you can fail, you’ll realize one very important fact: you need money. In accounting, there are two methods of counting money: the accrual method and the cash method. Accrual accounting means, “I’m expecting this money so I’m going to pretend it’s already in my bank account.” This sounds like hope doesn’t it. Cash method means “I will only count every cold hard dollar that I could throw on a bed and roll around in.” If it’s not in your hand, don’t count on it. You need a Cash-based mindset as an entrepreneur. Don’t hope that you’ll make money from all those potential clients, because even if people have talked about interest in your exhilarating idea, they may have just been being polite. It’s much harder to get people to fork up cash when the time comes due.
So part of your planning should be to build enough capital you’re going to need for at least the first 3 to 6 months of your monthly expenses and depending on the industry, it may have to be even the first year. Without proper funding, you will be constantly worried about paying bills instead of making money. You will be cutting costs where you should not be, which will result in lower returns. That other saying “it takes money to make money” is true for everyone who wants to not starve to death.
- There is no hope
- Have a “red reality” mindset when planning, so you can have “green growth” when you launch
- Finally, get enough money for your business before wasting months of your life spiraling out of control amongst the emptiness of space.
I would wish you good luck, but luck is about as useful as hope. So don’t rely on useless ideologies; go make it happen for yourself. Just remember, its time to get real