You’ve got your business running and your investments growing. With a tough financial portfolio at the palm of your hands, how are you going to move forward? Yes, you’ve got goals in place, but who said you can’t update them?
So many questions – yet, all of them attempt to demystify one point: value. You’ve got existing value as pronounced by your business venture and investments, but there is also another kind of value to which you need to look out.
The key to identifying this other value isn’t only through a simple auditing or review; in the process, you need to appreciate such value. And to appreciate could only mean one thing – gratitude.
So, you say ‘thank you?’
Of course, you don’t. Rather, you rear gratitude towards your current state of mind, as in becoming “thankful.” In your financial review, as digits reveal your effort’s worth, you have to gradually tame the hungry lion.
The lion that demands for more and more needs to realise that he already has a bit. This doesn’t suggest slacking off and becoming complacent; everyone needs a fair amount of hunger every now and then. Rather, it’s about balancing it out.
And at best, this gratitude-adoption combined with the hungry lion meant that your eyes got to move on other kinds of assets.
Wait, how much do I have?
There are many ways of reading your digits. You can settle to the simple method of collecting your most recent paperworks, tax returns, everything in paper. Add your assets and deduct the fixed variables.
On the other hand, you can scope on complex numbers. Squeeze to verify if digits are really your assets, if you still virtually have digits to add or deduct (like the case of account receivables).
But hold your horses! Before you go on thanking the heavens or your hard working self, consider double checking. Ask an accountant-buddy or auditor-buddy (ie, buddy status for the sake of free consultation) to check your numbers.
After getting a final figure, and smudging contentment all over your assets, what else is there to do? You should start considering your next target. Do you want to have more of the same asset, or expand your portfolio to accommodate other kinds (eg, property, businesses)?
Which prospect is the brightest?
Expanding one’s collection of assets works well for those who have yet to have such particulars. However, do be careful in considering your options; some of these new assets could consume your existing assets.
If you carefully study all of the routes towards obtaining your target asset type, you might be able to find a better (and probably, less expensive) way of obtaining the asset. In short, to pick the brightest prospect, you have to conduct a mini-study that is comprehensive enough to substantiate later strategies.
Leverage: Grabbing it sooner
What if you want a shorter duration between preparing funds and getting your target asset? Is this possible? Sure, it is – through a mechanism oft-called ‘leverage.’
Through leveraging, you wouldn’t have to agonise over the length of time it takes to appropriate funds. In fact, you can take the asset away and pay the leverage amount through the gained income of the newly bought asset. However, do beware as the use of leverage not only doubles your asset; it has the same effect with your loss.
Finally, entrepreneurs should not stick to evaluating existing assets every time it feels like they have everything. Instead, it should be conducted in a regular fashion, like monthly, quarterly, or biannually. This can be a simple sitting and writing affair, or could be a complex rundown.
Doing so enables you to upgrade your financial targets. And with up-to-date goals, you are guaranteed to chase a realistic bunch of assets, and eventually, win the race.