THE RELATIONSHIP BETWEEN THE ABILITY TO MAKE RIGHT FINANCIAL DECISIONS AND THE FINANCIAL POSITION OF FOUNDERS (and F1)

 

The common point of F1 (you take over hundreds of billions of assets from your parents) and the founder is invested it is about financial comfort when making decisions, But the dead point also comes from here.  They are two sides of the same coin: Psychological comfort Have you noticed the confidence of leaders when making financial decisions?  According to Equitix statistics on employers’ decisions; when the founders have a better financial position; They tend to make more reasonable & correct decisions; That right decision contains confidence in ability, intelligence, insight and self-recognition or self-esteem.  A decisive decision with a high accuracy rate.

However… 

Because human psychology is… quite aggressive in financial decisions. 

And if I ever lose, I tend to win back. Female founders seem to be more careful. 

It is this psychological characteristic that makes it easy for founders who make wrong decisions to lose their financial position. Because the more you lose… the more wrong decisions you make. 

Therefore, you must always maintain your good financial position in capital management and business operations to ensure that you always make wise decisions most of the time. 

For that reason… 

Shouldn’t it be easier for F1 or the founders when they first receive capital to succeed in starting a business than the Founders starting from zero? Is it because you feel comfortable in making financial decisions and are in a good position? 

But… 

The biggest problem of invested F1 and founders is that they have not yet trained their basic abilities in using money: 

With F1 

a) Lack of mentors to lead and guide them in spending; It’s hard to know… how to save when you haven’t enjoyed and spent the money yourself. The portrait of a founder with a high success rate is someone who knows how to manage money and has the financial resources to accumulate a small fortune and at the same time still have the ability to take risks (risk takers); Obviously, this is very difficult for F1; Hold a golden spoon in your mouth and pick up… silver coins. 

b) The second problem of F1 is that the old generation’s standards of success are imposed, but our market and times are always moving, not standing still; Under the pressure of having to prove achievements and asset management capabilities to parents, F1 needs a lot of encouragement to step out of the comfort zone and try… full decision-making authority. 

Not only do you have to be wrong to have experience, but you also have to have the skills to preserve assets; the problem is; No experience, no room for error… where to get… the ability to manage assets & make the right decisions? Like the chicken and the egg.

With the invested founder, the comfortable mentality is cleared and begins to lack the foundation and plan to use capital to really see the effectiveness of using money.

a) Investing in too many activities at the same time but the time fund and maturity of the team are not enough to find conclusions for the use of these decisions from a financial perspective. 

Specifically: When will the payback for these financial decisions be paid back? 

b) Recruiting too many qualified people increases fixed costs at a time but the conversion into sales is insignificant. 

c) Haven’t been able to verify clear success formulas for scalability (growth) but are under pressure to spend money because the money being poured has its own costs, if you don’t use it, you have to be forced to use it. Because of that, being invested in and praised on a boat or having a relatively happy starting point has never been a strong point. 

Because it can be a sign of reduced trust from investors or parents if the results of using capital are not really effective. 

So… 

Proving your ability to use money rigorously before giving money to someone to use is something that Equitix must help founders & F1 understand to improve their reputation in using money from others before using bigger capital. F1 must prove success in money management by starting a business in real life with a sum of money that is not much when compared to their parents’ assets, returning to take over their parents’ assets with The position of the investment has been paid back + surplus to continue to increase or enhance your reputation in taking over assets and maintaining your family position for > 3 generations. As for the founders, the starting point is not as good (it’s okay), we have to study finance to improve our position, to manage capital well, to make more right business decisions than wrong ones, gradually gaining position. Your increased financial position creates comfort for founders in decision making and enhances reputation and trust with shareholders as well as the internal capacity to use money in accordance with their abilities. The team’s deployment force faces pressure from investors to spend money and grow. 

Never lose your financial position easily just because… FOMO – Fear of losing investment and business opportunities, so you decide to rush into other opportunities with your core competencies.

The market always has new opportunities to exist, don’t worry guys; Take a few steps back to let the trend pass, something truly authentic will exist. 

Doing business is about having fun – I’m only happy when I have a position and good money management ability. Trust me! 

Fun Fact: Sometimes we are not satisfied with each other in the Board of Directors because the expectations from both sides are too high and both sides cannot imagine a significant amount of the Operation after deciding to invest and make money.