The founder who came up from zero and the family’s financial position when starting a business are very different.
Founder’s way of success comes from having little money, different from the mindset of people with money.
If a founder starts from zero or little capital; The ability to clearly understand the origin and foundation to accumulate small things into great ones; it is the basic financial principles and mindset for success.
Why do most of us feel headaches in business?
Because we do not feel the difference between our resources and our current position
(Money, knowledge, vision, relationships, ability to attract talented people, basic ability to manage assets…), then How should they correspond to growth potential?
Founders often have headaches because:
1. Low position and resources, but want to scale too quickly -> Headaches because of insufficient management and operation capabilities.
2. Too much position and resources, too slow scale -> Headache because the people/team grows faster than the clarity of the founder’s decisions, they will leave.
Therefore, learning finance and accounting is to know the fundamentals and not be FOMO because outside society they bombard you with too much greed, envy, desire, and desire to be like others.
– Just need 1 person to show sales and orders
– Show a warehouse full of orders waiting to be delivered
– Show the property with majestic images in the media
– Show crowded motorbikes at the point of sale
– Show customer messages
– Show sales/not actual revenue from accountants
– Show cars
– Show houses
– Show money, but don’t know their net assets (after deducting debt)
Founders who don’t know their finances are susceptible to FOMO.
At that time, the founder will ask what I have to do to be like others? Obviously, in the past, he was inferior to me, and that guy even studied inferior to me in the past; Some of them used to be my employees, why did they grow so fast?
Because of these factors, founders are very susceptible to FOMO, FOMO leads to actions, leads to growth decisions, leads to over-recruiting, leads to cutting sales too deep, leads to over-investment decisions. without looking back to see your position in terms of:
– Money/Equity
– Knowledge
– Experience (this creates vision)
– Relationships to handle many difficult issues when being an owner in Vietnam (tax, government, market management, legal…)
– Ability to attract talented people…
– Basic capacity and management of own assets.
Leading to actions because of FOMO that invest beyond your control; leading to headaches, headaches because out of 10, 7 out of 10 we will do wrong, if we do wrong we have to pay the price in money, when paying the price = money; I will have a headache.
To avoid FOMO and look at external phenomena and clearly understand the nature of things, to help you become leisurely, happy, and enjoy the process of growing up for yourself, your team, and your team; Basic financial capacity is very important.
That means you have to be able to dissect and analyze whether the opponent is real:
– Is it as strong as they are showing off?
Am I as strong as I think and act on social networks? When I cannot answer the above two questions, I will be less realistic and have a headache.
According to the founder, do you know who will feel it the most?
Those are our employees; They clearly feel that we are not very good, and our leader is very good online.
That is the GAP that causes loneliness that we create.
Your Co – Founder must be a piece of the puzzle for you and compensate for your nose to smell money-making opportunities in the market, you must have a keen nose and an ability to dare to take risks; But at the same time, there must also be someone with good sense to pull you back and analyze for you what the opportunities currently happening in the market really are; They will help you see the truth and facts.
Cao Cao once fought against Yuan Shao at Guandu; The battle recorded in history books decided the next 500 years of Great Han; After winning the first battle with Vien Minh Chu – Vien Ben Tu, who was a 4th generation leader; Cao Cao, after many years of accumulation, clearly did not have enough food and herbs to compete with the original Vien family, which was rich in power, money, food, and area.
Because people knew that Cao Cao was famous for his cunning, the officials of the Yuan family advised against attacking Cao Cao after receiving secret information that Cao Cao no longer had enough food and grass to advance his army. not enough for more than 1 day; but inherently skeptical; The leader hesitated and did not attack; but if he had attacked, he could have won.
Next to Vien Bon So were Hua Du and Quach Do.
Hua Du advised to fight.
Quach Do advises waiting.
If you are the owner/founder; What you will do?
If you understand finances and basics; You will follow Hua Du.
If you are not smart enough; you will follow Quach Do; even chased Hua Du away.
After Hua Du left after 10 years of serving the Vien family, Hua Du joined Cao Cao’s army and directed the raid on the grain warehouse at O Xao. Cao Cao turned defeat into victory, but the core reason was that the original leader Vien was not intelligent enough, and could not distinguish between the advice of Hua Du and Quach Do, which advice was reasonable; It’s good to hear everyone say it and have their own reasons.
With 700,000 troops and 200,000 stone and grass, Yuan was defeated by Cao Cao because of his lack of basic ability and analysis of his opponent’s competitive landscape; It is unknown whether the nature of Cao Cao’s display of prestige is equivalent to their internal financial strength.
Let founders see,
Even if you have talented people by your side, but you are the boss but cannot use them, you are less intelligent; That was the reason for the defeat of Alliance Leader Vien Thieu.
In the marketplace; Learning the fundamentals is learning finance.
Learning finance is knowing how to use talented people, distinguish between flattery and meritorious deeds, and make smart decisions for yourself.
Going through the crisis season is great; Those who have resources will survive (and have assets to fight); But those who only know how to sell will not survive.
If you still have money, you can still play; running out of money, times have passed; Some people have to put aside their dream of being their own boss.