Invest in Yourself!

When we think of investing, the first things which come to our minds are property, shares, bonds etc. We tend to forget the most important asset we possess, OURSELVES.

I am my biggest and most productive asset. I believe that we must first think of investing in ourselves, be it by doing a course to add a skill set, going for that $300 spa to calm me down, visiting new places to learn from them and also relax myself and so on. Investing in myself has several advantages

- It's Permanent: What I do for myself stays with me forever.

- It's Value Additive: All things I do for myself keep getting added to things I have previously done, thereby creating greater value through a compounding effect.

- It's Protected from External Factors: All investments have external factors and risks associated with them.

- It's the Asset you Know the Best About: Since you need to invest in an asset which you know the best about, investment in yourself makes sense.

So I think it's time we realise that our best investment option is to invest in ourselves first, and then look outside.

"I Invest In The Bus Driver, Not The Bus Or The Destination"

Love this quote by Vijay Shekhar Sharma, founder of Paytm, a leading wallet service and now marketplace in India. Investment, if not channelized well, can result in wastages and irrational expenditure, not resulting in results we expect. Investing in the right places is very crucial in reaching one's goals.

Here Vijay emphasizes on the importance of the team driving the business. I feel a good team with an ordinary idea can reach success. On the other hand, an average team behind an incredible idea may not be able to do so.

You should identify what you feel is crucial to your startup and invest in that wisely.

Have a plan!

A business plan, as theoretical as it may sound, is a must have for any entrepreneur. Lack of a proper plan is a very big reason as to why my last startup failed. We often tend to think that a plan is only required to show to an investor when we start looking for investment. This is a big mistake most of us tend to mistake.

One MUST have a plan for the startup from the very first day. We need to comprehensively plan the business for the short and the long terms. A typical plan must include:
- vision and mission of the startup
- product/service clearly defined
- target markets addressed alongwith their sizes
- financial planning with regards to money required and revenue models
- team plan; who we need now and how this will change over time
- my competitors; their strengths, weaknesses and that one solid thing (atleast) which differentiates my business from them
- targets for everything; customer traction, sales, profit margins etc.

I am not saying that actuals will go according to the plan and in fact they almost never do, but it is important for an entrepreneur to know what the reasons for the deviations are and what has to be done from there on. The plan needs to be updated regularly so that, as I have already mentioned in a previous post, the entrepreneur is in control of the venture.