Most seasoned entrepreneurs would tell you that losing money is part of business. And what matters more is how you rise up from that setback.
As renowned money guru Robert Kiyosaki said: “Don’t waste a good mistake… learn from it.”
With that said, it is wise to learn not just from your own mistakes, but from the mistakes of others too. Here are some golden lessons entrepreneurs have learned from the painful experience of losing money:
1. Have a mentor – and choose him or her carefully
You need a more experienced adviser – end of discussion. Some people actually think this is optional but it is one of the most important decisions you would have to make as an investor and entrepreneur.
You’ve heard the saying that experience is the best teacher. If you can pool together the experiences of one, two or three advisers and add them to your own, you quadruple your lessons and hasten your learning process.
Ask all the questions you want and absorb everything you can learn from other people- especially in the aspects where you are weak at.
2. Do not be afraid to make mistakes
Mistakes can be painful but they are not final. But some people are so fearful of mistakes that they end up not taking risks at all. Calculated risks are okay – remember, the greater the risk, the greater the return. This is especially true in investing.
When entrepreneurs are asked to share key learnings from their entrepreneurial journey, many entrepreneurs reveal they wish they made mistakes earlier. The earlier they commit their errors, the earlier they can learn from them and maximise the lessons.
If you look around, you will discover that those who made the biggest mistakes ended up being the most successful… because they gained memorable experiences that taught them crucial life and business lessons.
3. Take responsibility for the outcome of your actions
When you lose a big sum of money, the usual first reaction may be to look for someone or something to blame. You may want to point to your mentor, your employee, the stock market, Suze Orman who gave the ‘bad’ advice on national television, the president of the country… anyone but yourself!
Other factors might have contributed to the loss, but accept that the main accountability falls on you. It might sting your self esteem a bit, but moving on means that you challenge yourself on how to make up for that loss. And that will help you grow up fast.
4. Be on the lookout for opportunities
Losing money is not limited to losing the cash that you have on hand. There is a bigger mishap that might not be immediately obvious, but can be quite sizeable – the failure to take advantage of great opportunities.
With our fast-paced environment, new trends are constantly emerging and you have to be up-to-date. It would be wise to have certain funds ready for investing when you see a great opportunity.
You might want to consider having a full-time broker with the expertise to advise you which risks and investments are worth taking and which ones are not.
5. There is no quick fix when it comes to making money
You might be dreaming of a magic formula to help you make more money but really, there is none. You know well enough that get-rich-quick schemes are usually scams or not legit.
Do not be so fascinated with the idea of getting rich that you make that your goal in life. Remember, the most important things in life cannot be bought by money: family, friends, health, personal values, honor, etc.
6. Work hard and work smart- and the fruits of your labor will be sweeter
It is nice to have money and all that it can buy for us. But keep in mind that losing it doesn’t mean your business dreams are over,
Rise up from any challenge and press on… learn from your own mistakes and the those of others and come back stronger, wiser and more motivated to succeed.
About the author
Gemma Reeves is a seasoned writer who enjoys creating helpful articles and interesting stories. She currently writes for FindMyWorkspace and has worked with several clients across different industries such as advertising, online marketing, technology, healthcare, family matters, and more. She is also an aspiring entrepreneur who is engaged in assisting other aspiring entrepreneurs in finding the best office space for their business.