THE ENTREPRENEURIAL MIND

GOAL SETTING, CREATING SUSTAINABLE WEALTH,

AND GAINING FINANCIAL FREEDOM

TABLE OF CONTENTS
GOAL SETTING 3
I. INTRODUCTION TO GOAL SETTING 3
A. WHAT IS GOAL SETTING? 3
B. THEORETICAL FOUNDATION3
1. Goal Setting Theory (Locke & Latham, 1990) 3
2. Expectancy Theory (Vroom, 1964) 4
II. ENTREPRENEURIAL GOAL SETTING 4
A. KEY DIMENSIONS OF ENTREPRENEURIAL GOALS 5
■ Type of Entrepreneurial Goals 5
■ Time Frame System of Entrepreneurial Goals 5
■ Measurability of Entrepreneurial Goals 7
■ Domain of Entrepreneurial Goals 8
■ Level of Entrepreneurial Goals 8
B. THE GOAL SETTING STRATEGIES FOR ENTREPRENEURS 9
■ The SMART Method 9
■ Why are SMART Goals Essential for Entrepreneurs? 11
C. GOAL SETTING’S STRUGGLES AND OBSTACLES FROM THE EYE OF AN
ENTREPRENEUR 12
■ INTERNAL STRUGGLES 12
■ EXTERNAL OBSTACLES 14
III. IMPORTANCE OF GOAL SETTING FOR ENTREPRENEURS 16
CREATING SUSTAINABLE WEALTH 17
I. INTRODUCTION 17
II. KINDS OF WEALTH 17
III. ENTREPRENEURIAL MINDSET TO CREATE SUSTAINABLE WEALTH 18
IV. MONEY MANAGING 19
V. START-UP FINANCE 19
VI. CAN WE RUN THE BUSINESS AT A PROFIT? 20
VII. ENTREPRENEURS PERFORMANCE ASSESSMENT 21
VIII. THE ROLE OF SUSTAINABLE WEALTH 21
HOW TO GAIN FINANCIAL FREEDOM 22
REFERENCES 24

GOALSETTING

I. INTRODUCTION TO GOAL SETTING

A. WHAT IS GOAL SETTING?

Goal setting is a fundamental human activity that permeates various aspects of life
—with significant implications for motivation, performance, and overall satisfaction. It
involves the conscious process of establishing specific, desired outcomes and developing
a plan for achieving them. In essence, goal setting bridges the gap between aspirations
and reality, providing a framework for action and direction.

At its core, “goal” is an outcome to be achieved within a specific timeframe, driving

individuals and organizations to efficiently and effectively strive. It acts as a guidance,
providing clarity on what one wants to accomplish and which direction to take.

[Link] FOUNDATION

1. Goal Setting Theory (Locke & Latham, 1990)

Widely recognized as the most influential framework in the field, Goal Setting
Theory assumes as fact that setting specific, challenging goals leads to higher
performance compared to vague or easy goals when coupled with performance feedback.
This theory emphasizes the following key principles:
 ● Specificity: Clearly defined goals provide a concrete target, minimizing
ambiguity and focusing efforts towards a specific outcome. Vague aspirations
like “do better” lack the direction necessary to guide focused effort.

● Challenge: Goals that push individuals beyond their comfort zone fosters a
sense of purpose and drive greater effort compared to easy or unambitious goals.
Easy goals may not stimulate the necessary effort for significant improvement.

● Commitment: Individuals are more likely to achieve goals when they are
actively involved in setting them and feel a sense of ownership. Active
participation in the goal-setting process and a strong belief in achieving the goal
are crucial for success.

● Feedback: Regular monitoring of progress and providing constructive feedback

allows individuals to adjust their strategies and maintain motivation and even
momentum towards their goals.

● Task Complexity: The complexity of the task should be considered when setting
goals to ensure they remain achievable and avoid overwhelming individuals.

Locke and Latham’s study demonstrated that individuals working towards

specific, challenging goals consistently outperform those with vague or easy goals,
highlighting the power of goal setting in directing and motivating behavior.

2. Expectancy Theory (Vroom, 1964)

While Goal Setting Theory focuses on the goal itself, Expectancy Theory tackles
the motivational factors that drive individuals towards goal attainment. This theory
proposes that motivation is influenced by three key perceptions.

● Expectancy (Effort): Individuals must believe that their effort will lead to the
desired outcome. Setting achievable goals increases the perceived likelihood of
success.

● Instrumentality (Performance): Individuals must perceive a clear connection

between achieving the goal and receiving desired rewards or outcomes, aligning
them strengthens the motivation pull.
 ● Valence (Rewards): The perceived value of the expected outcome significantly
impacts motivation. Goals associated with intrinsic valences / rewards (e.g.,
personal satisfaction, growth, etc.) hold greater motivational power than those
solely focused on extrinsic valences / rewards (e.g., time-off, benefits,
promotions, pay policies, monetary gains, etc.).

According to this theory, individuals are more likely to exert effort towards goals
when they believe they can achieve them, and when the associated rewards hold personal
significance.

II. ENTREPRENEURIAL GOAL SETTING

A. KEY DIMENSIONS OF ENTREPRENEURIAL GOALS

■ Type of Entrepreneurial Goals

● Process Goals. These are short-term and detailed or concrete goals that
include specific actions (e.g., technique, strategy, etc.) that are desired to
be accomplished and reach Performance Goals — making goals
potentially lead to bigger outcomes and higher chances of success. This
revolves around aiming and preparing on how entrepreneurs can hone or
even perfect their skills, strategies, behaviors, and techniques crucial to
achieving their goals. As these goals help in seeing things through with
one having the most control over process goals, it encourages actions or
“processes” that support performance goals.

● Performance Goals. This type of goal is what identifies a specific

standard to be achieved for one’s goal along with tracking improvement
and measuring progress. Similar to stepping stones, this focuses on
performance/s and behavior/s of an entrepreneur or business team that
helps in getting them closer to achieving Outcome Goals. Further, this is
what bridges the gap between process goals and aspired outcomes.

● Outcome Goals. These are long-term and more abstract or overarching

goals that target a particular outcome — focusing more on what one wants
to achieve or the end result and less about how to get there and the ways
 such goals will be attained. This allows one to evaluate process goals and
current and intended performances to be able to arrive toward an end goal.
It is also to note that one has least control over outcome goals.

■ Time Frame System of Entrepreneurial Goals

● Short Term Goals. A company's short-term goals constitute vital steps

toward its long-term goals, which are usually planned to be completed in a
few weeks, months, or even a year. These objectives are similar to jigsaw
pieces; they all fit together to help you realize your long-term dreams. By
decomposing your long-term goals into achievable short-term goals, you
may efficiently assess your progress and maintain focus on the ongoing
development and flourishing business.

● Long Term Goals. These are the milestones that stand for your aims and
objectives. They are important indicators of the success and advancement
you aim to attain over the next three to five years.

● 1-Year Goals. Creating a feasible and attainable plan for the development
of their business over the course of a year is an essential goal that every
entrepreneur should set for themselves. Entrepreneurs frequently fall
victim to the trap of having high expectations, thereby setting them up for
letdown when their ambitious goals are not achieved by the end of the
year. As such, in order to successfully manage this challenge, it becomes
necessary to include additional goals in addition to the traditional one-year
goals, as these provide a more concrete and consistent path to success. The
capacity to effectively assess progress and maintain motivation along the
journey can be improved by broadening our approach to goal-setting and
incorporating more achievable goals alongside the more ambitious one-
year goals.

● Power Year Goals. This outlines a specific goal-setting framework

designed to maximize progress and growth for entrepreneurs. It
emphasizes a strategic approach focused on achieving significant results
within a defined time frame of three (3) months—a guide framework that
operates on a QUARTERLY basis or on a 13-week cycle.
The concept of “Power Year Goals” recognizes the benefits of a shorter
and more manageable system, allowing entrepreneurs to maintain laser
focus on specific objectives while ensuring consistent progress throughout
the year.

a. Major Goals: These are the single, most impactful objectives for
the quarter. Utilizing the Pareto Principle (the 80/20 rule), these
goals should be chosen strategically to generate the most
significant progress for the business. Every action and decision
within the three months should be geared towards achieving this
primary goal.

For instance:
○ Launching a product line.
○ Increasing monthly recurring revenue
by a desired percentage
○ Securing a key partnership.

b. Minor Goals: Alongside the major goal, there will be 2 to 3

additional, smaller goals to be set. These goals still contribute to
the overall success of the business but are considered secondary
priorities. They are achievable within the shorter timeframe and
serve to support the major goal while ensuring progress in different
areas of the company / organization / business.

For instance:
0 Optimizing and improving existing marketing campaigns.
○ Implementing a new customer relationship management
(CRM) system.

c. Be Goals: Recognizing the critical role of leadership in

entrepreneurial success, the framework also incorporates “Be
Goals.” These are personal development objectives aimed at
fostering specific qualities within the entrepreneur. This may be
observed through conscious development and strengthening of
necessary skills, which are stimulated through self-improvement
efforts, to effectively guide the company / organization / business.

For instance:
 0 Developing a consistent morning routine
to increase productivity
○ Delegating tasks effectively to team members
○ Delivering a compelling presentation to secure funding from
investors.

■ Measurability of Entrepreneurial Goals

● Quantitative Goals. Quantitative goals are those that can be expressed

and tracked through concrete numbers. They provide a clear and objective
measure of progress, often aligning with financial targets and tangible
outcomes.

For instance:
○ Increase revenue by desired percentage in the next quarter.
○ Reduce operational costs by desired percentage.
○ Acquiring a set number of new clients.

● Qualitative Goals: While Quantitative Goals are essential for financial

tracking. Qualitative Goals address the less tangible aspects of
entrepreneurial success. These goals focus on personal development, well-
being, and overall satisfaction within the company / organization /
business. Although it is seemingly less tangible, these goals can be
measured through defined scales and assessment. By assigning a
numerical value to the current state (e.g., confidence level: 6 out of 10) and
setting a target for a future point (e.g., 8 out of 10 in three months),
entrepreneurs can track progress and gauge their improvement.

■ Domain of Entrepreneurial Goals

● Professional Goals. These are the aspirations of entrepreneurs that

flourish in their professional development in reaching their desired career
path or future endeavours while being of help to their industry, team, or
workplace (e.g., company, organization, business, etc.) they lead or belong
to. This goes beyond aiming higher quality of work and strategic
management, competencies, and opportunities but also the involvement of
 motivation and satisfaction that allow entrepreneurs to continue working
towards their career goals and facilitate effective professional roles.

● Personal Goals. This undertakes the development of skills and

capabilities while maintaining positive personal growth and well-being.
The concentration of entrepreneurs’ on their personal goals considers the
relationships, lifestyle, values, principles, roots, and own desires linked to
improving their life which can influence individual development and
performance to succeed in the business field. Setting personal goals can
help enhance self-awareness, openness to new ideas, bring personal
fulfillment, and many others that improve all aspects of one’s life which
can also inspire others. It is also worth noting that personal goals are just
as important as professional ones.

■ Level of Entrepreneurial Goals

● Ambitious Goals. Setting ambitious goals as an entrepreneur can serve as

a source of motivation, pointing the way to success in numerous aspects of
life and business. In addition to fostering constant growth and
advancement, this endeavor gives them a feeling of direction and resolve
that helps them realize the business' greatest potential and ambitions.

● Realistic Goals. When setting realistic goals, it is necessary to consider a

number of aspects, including your skills and expertise, present motivation
level, time constraints, and mindset. These objectives direct you toward
accomplishments that are feasible and consistent with your potential by
reflecting your strengths and aspirations. Setting realistic goals allows you
to develop a strategy that can help your business.

B. THE GOAL SETTING STRATEGIES FOR ENTREPRENEURS

Entrepreneurs does not stop with only knowing their goal/s because what comes
after is knowing “What” are the ways to plan it and the resources required to work on it,
“How” to achieve it properly and with structure, “When” it ideally gets accomplished,
“Why” it is worth reaching or even the purpose it holds for them or for others, and a lot
more significant steps crucial to achieving great progress to desired outcome/s.
■ The SMART Method

In the 1981 issue of Management Review, George T. Doran was the first to
propose the acronym, SMART, a five-element technique encompassing
characteristics of an intelligent goal which stands for:

● Specific
● Measurable
● Achievable
● Relevant
● Time-bound

SPECIFIC

Goal/s must be clearly and specifically defined and with no doubt and
ambiguity — making it easily understood. To make a goal specific, it must answer
the ‘W’ questions as outlined below:

○ WHO: Who is involved or responsible for this goal?

○ WHAT: What do you want to achieve?

○ WHEN: When do you plan to accomplish this?
○ WHERE: Where are you going to focus?
○ WHICH: Which problems or limitations do you foresee with your goals?
○ WHY: Why is this goal important?

MEASURABLE

Goal/s must have the criteria to allow individuals to track or measure their
progress, assess the plan, and even evaluate quantifiable aspects. Further, such
criteria will help in determining if you are still on track to reaching your goal/s
effectively. To make a goal measurable, the following questions must be asked to
oneself:

○ How many/much?
○ What is/are the determinant/s or my indicator/s of the progress?
○ How will we measure our progress along the way?
○ How do I know if I have reached my goal?
ACHIEVABLE

Goal/s must be attainable or is/are possible to reach. However, goal/s

should not be “too easy” which diminishes the room to be motivated by it and the
presence of such goals to be challenging. This also helps in finding ways that can
make individuals ponder and know how to work towards what they aim for. In
setting achievable goal/s, one should answer questions such as:

○ How can you achieve this goal?

○ Considering your current circumstances and skills, how attainable is this
goal?
○ Do you have the time, resources, and capabilities to achieve the goal? If not,
what are you missing or lacking from?
○ Can you commit to achieving this goal?
○ Have others done it successfully before?

RELEVANT

Goal/s must be realistic and worth working on, considering the need to
align it to the actual benefit/s in its achievability and relevance to individuals, the
company/organization they run or the team they lead or belong to, and their
professional development. In setting relevant goals, it poses questions such as:

○ Why are we aiming for this goal?

○ Is the goal worth pursuing?
○ Is this the right time to reach this goal?
○ What is in it for the team and the company/organization as a whole?
○ How do these goals fit into what we want to achieve with the company in
the long term?

TIME-BOUND

Goal/s must have a timeframe, a point when it must start and when is the
targeted completion. Creating a deadline for goal/s creates a sense of urgency and
motivation for accomplishment by only having a certain time allotted to achieve it
or work on it. This also helps to keeping track of the progress towards the end
goal and be of aid in cases that adjustments in real time must be made if
expectations are not quite met based on the established timeline.
 ■ Why are SMART Goals Essential for Entrepreneurs?

Not only does setting up goals become a creative process that may lead to
several innovative ideas concerning the business field but it is also an approach
that can bring clarity to the purpose which entrepreneurs tend to look for or a
clear vision as to what they are going to deal with. With the help of the SMART
technique in entrepreneurial goal setting, it forces individuals to get their plans,
timeframe, and priorities right and highly-structured all while being up for how
challenging it could get in making their goals possible, actionable, and attainable.

The framework of SMART goals might be considered as a traditional goal

setting method as it has been utilized for a long time in the corporate field already,
however, it can still help in paving the way to understanding the goal, its
potential/s and purpose/s, why it matters, and to realizing how it is worth aiming
for and investing resources, effort, and time for, especially in the long run. With
this, entrepreneurs, as they focus on strategic tasks, measure outcomes, and
facilitate scalable success, the SMART method can enhance their vision, mission,
and goals to innovation and transformative concepts and most importantly, change
their mindset.

C. GOAL SETTING’S STRUGGLES AND OBSTACLES FROM THE EYE OF

AN ENTREPRENEUR

The entrepreneurial journey is a relentless pursuit of ambitious, often self-defined

objectives; wherein, studies consistently highlight the crucial role of goal setting in
entrepreneurial success. However, despite the framework’s widespread adoption, a significant
portion of startups fail as entrepreneurs struggle to steer their way towards their desired
outcomes. This begs the question:

Despite the critical role of goal setting,

Why do so many entrepreneurs encounter difficulties in achieving their envisioned goals?

■ INTERNAL STRUGGLES
 ● Mindset Challenges

Even optimistic entrepreneurs can manage a range of situations, but they

may encounter some obstacles that will make it difficult for them to achieve their
goals. Fear of failing is one of the challenges, which results in uncertainty and
reluctance to perform their duties perfectly. While having high standards and
aspirations could make being a perfectionist beneficial at times, it can also work
against you. A lack of confidence frequently leads to missed opportunities and a
reluctance to take chances. Being impatient can also lead an entrepreneur to snap
and make hasty judgments, which frequently frustrates them. Being impatient is
simply a bad quality for an entrepreneur.

a. Fear of Failure
b. Perfectionism
c. Lack of Confidence
d. Impatience

● Time Management

One of the most common challenges to goal setting is having poor time
management, especially when this leads entrepreneurs to inadequate work-life
balance Since creative thinking and structured planning are needed in
entrepreneurial goal setting, poor time management can drastically affect how
entrepreneurs can achieve sufficient productivity, high-quality planning, and the
timeframe set in accomplishing goals. Not only do less focus and time allotment
for setting and achieving goals can be a problem but also by being too occupied
by or invested in a particular goal in such a way that leads to neglecting other
important things or priorities (e.g., to thrive in other aspects, complete other
targetted goals, etc.). In this sense, this struggle may root from, but not limited to,
the following:

a. Overcommitment
b. Procrastination
c. Lack of Organization
d. Distractions
 ● Motivation and Persistence

The most crucial and essential to goal setting is being motivated and
determined enough to start, continue, and finish working towards ultimately
reaching desired outcomes. This does not only apply in the aspect of
entrepreneurship but also to one’s personal growth or professional development,
in general. Thus, if individuals tend to lack the effort, energy, and clear direction,
they are highly likely to have difficulty or less chances in achieving their goals.
Consequently, one must also keep the state of being aligned to the purpose or why
the goal matters and must be pursued to avoid encountering the following
struggles:

a. Loss of Motivation
b. Lack of Focus and Clarity
c. Neglecting the 'Why' Behind Goals

● Planning and Execution

As entrepreneurs, they might occasionally find it challenging to plan and

execute tasks, particularly when faced with unforeseen roadblocks that
could keep them from moving forward. The first is that having ambiguous
goals will cloud their vision. Additionally, failing to measure your
progress or take inventory will have a significant negative impact on your
organization since monitoring your progress will ensure that your
resources are used effectively. Entrepreneurs may find it difficult to keep
up with the numerous trends that are now in style, but if they do not, they
will fall behind and miss out on chances. Inadequate leadership and a lack
of vision can severely impair a company's chances of success and make
them fall behind competitors who are aware of the shifts in market trends.

a. Setting Unrealistic or Vague Goals

b. Forgetting to Take Inventory or Progress Tracking
c. Overloading with Too Many Goals
d. Ignoring Current and Projected Trends
e. Poor Management
f. Lack of Foresight
 ● Personal Attributes

The path to achieving goals is often hindered by internal struggles that act
as self-imposed interference. Lack of initiative and action, the absence of genuine
willingness to put in the necessary effort, can lead to procrastination—keeping
aspirations firmly in a stagnant and postponed state. Limiting beliefs, negative
self-talk that reinforces doubts about one’s capabilities, can further paralyze
progress. Furthermore, poor decision-making, often fueled by impulsivity or a
disregard of consequences, can lead to choices that deviate from the path towards
achieving objectives. Finally, the constant creation of indefinite excuses,
justifications for inaction or procrastination, further delays progress and erodes
the commitment necessary to translate aspirations into concrete achievements. All
these internal struggles, if left unchecked, can significantly prevent individuals, or
rather, entrepreneurs from reaching their full potential and achieving their desired
goals.

a. No Initiative, action, willingness

b. Limiting Beliefs
c. Poor Decision-making
d. Indefinite Excuses

■ EXTERNAL OBSTACLES

● Market Volatility

Beyond the emphasized internal struggles, entrepreneurs must also face

the external environment wherein it presents a dynamic and often unpredictable
landscape.

One such formidable external obstacle is the inherent volatility of the

market. Sudden economic shifts, changing consumer preferences, fierce
competition, and even the emergence of disruptive technologies that can
completely reshape the field that an entrepreneur is in—rendering their plans
obsolete. This volatility necessitates constant adaptation, forcing entrepreneurs to
re-evaluate their goals and potentially redefine them entirely.
 ● Team Dynamics

Setting and achieving goals as a team can have arising challenges,

particularly in terms of openness, communication, and working alongside each
other. Teams often struggles with varying or contrasting ideas or goals, thus, it is
important to set and align common or shared goal/s to keep a sense of unity and
respect within them. For instance, if everyone is not on the same page, the team
can lose track of what must be done and what is collectively targeted to be
achieved. Apart from this, if delegated responsibilities in the team are not met
ideally as planned or expected, it will affect the productive and efficient
management of tasks and effectiveness of teamwork. Further, it is worth-noting
that poor team dynamics in entrepreneurship makes successful collaboration and
innovation next to impossible.

● Resource Constraints

Dealing with constraints on resources can be a major challenge for

entrepreneurs, requiring strategic decision-making and imaginative problem-
solving. Prioritizing work, streamlining procedures, and looking for creative
solutions to increase efficiency become crucial when faced with constraints on
resources, time, or labor.

● Unforeseen Circumstances

Unforeseen circumstances represent the unpredictable events that can

significantly disrupt the carefully laid plans of any entrepreneur. Natural disasters
(e.g., floods, earthquakes), global pandemics that alter consumer behavior, or
even rapid technological advancements can completely reshape the landscape of
the industry. These events often necessitate a complete reevaluation of goals,
forcing entrepreneurs to adapt their strategies, adjust timelines, and potentially
redefine their objectives entirely to address the new reality created by such
unforeseen circumstances.

III. IMPORTANCE OF GOAL SETTING FOR ENTREPRENEURS

The ability and initiative to set goals and create a clear direction towards what one strives
to take, may it be for personal purposes or business ventures, is crucial to achieving success or
ultimately reaching such path or desired outcomes. Not only does goal setting provide clarity but
it allows one to have an unshaken focus on what must be prioritized and the ways or measures to
achieve them. Thus, well-defined goals aid individuals in having a vision of how far they have
come — to keep track of their progress and what more can be done. Apart from this, effectuating
goal setting makes individuals stay motivated and relentless even through challenging times or
circumstances that may discourage them or lead to self–doubt.

It is also a part of goal setting to give room for individuals to go over their goals and
ponder whether such goals are still relevant or necessary, why certain goals did not come out as
achievable as the others, and what changes are needed to push through the potential of making
better goals and perspectives. With this, it is worth noting that one must move on from previous
goals that were not able to bear much fruit because goal setting inevitably goes through trial and
error wherein failure would only mean having the opportunity to rethink and rebuild feasible
goals all while being more flexible on responding to new obstacles that may again challenge the
plans into achieving these goals.

Essentially, by embracing the ongoing process of goal setting, entrepreneurs cultivate a

growth mindset that fosters adaptability, resilience, and the ability to learn from both successes
and failures. This continuous learning and improvement ultimately empowers them to achieve
their full potential and forge a path through the ever-changing landscape of personal and
professional endeavors.

After all, without a clear target, even the most determined archer risks missing the mark
entirely. Let goal setting help you hit your bullseye.

CREATINGSUSTAINABLEWEALTH
I. INTRODUCTION

Sustainable isn’t just about tourism, several things should last the next generations to
come. Here in the Entrepreneurial Mind, we create sustainable wealth. Sustainable wealth is a
benefit that will be present in the next years and life to sustain future life. One way to create
sustainable wealth is by investing as it will increase your money in the future. In short, we create
sustainable wealth by the consumption and use of benefits that are equal to the investments we
create to maintain and sustain the current wealth that we have.

II. KINDS OF WEALTH

Wealth is the abundance of valuable resources or assets that contribute to prosperity,

well-being, and quality of life. It encompasses various forms of tangible and intangible resources
across different aspects of human life that includes the Financial, Spiritual, Innovation, Human,
and Social Wealth. The varying types of wealth are as outline below:
 ■ Financial Wealth — it refers to the monetary resources and assets including
money, savings, investments, bonds, stocks, and other financial aspects.

■ Spiritual Wealth — it pertains to inner richness, fulfillment, and a sense of purpose

or meaning in life. This also involves values, beliefs, personal growth,
mindfulness, and spirituality.

■ Social Wealth — it encompasses various aspects that are important for individuals,
communities, and entire society. For individuals, this includes the family,
colleagues, and friends who support you.

■ Human Wealth — it represents the knowledge, skills, capabilities possessed by

individuals or groups. It includes education, experience, expertise, and talent that
can contribute to personal competencies.

■ Innovation Wealth — this relates to the capacity for creativity in innovating new
ideas, products, services or processes. This involves technological advancements,
entrepreneurial concepts, and scientific discoveries.

III. ENTREPRENEURIAL MINDSET TO CREATE SUSTAINABLE WEALTH

An entrepreneurial mindset is an essential way of thinking for an entrepreneur. It is a

method that focuses on how one will handle challenges and mistakes. It is also how a person has
this natural desire to widen the range of their abilities and to continue trying. This is an important
mindset that everyone must adopt to be able to overcome challenges and to further improve their
abilities.

1. Adopting a Mindset of Abundance

Abundance, having ample, opens our minds to all the possibilities of how we can support
our self-worth. This is an important component of the entrepreneurial mindset as it provokes
creativity and effectively makes entrepreneurs decide on the financial management aspect of
their business.

2. Polish Your Creative Mindset

An entrepreneur needs to utilize and innovate creative solutions for every problem that
might occur. They should focus more on thinking about how they can solve the problem rather
than asking or seeking others' help.
 3. An Open-Mind Combined with Knowledge

Aside from an open mind, entrepreneurs must also combine it with knowledge. Be open
to new knowledge and experiences and apply them.

4. Building Consistency

Consistency is the key — showing how committed one is to achieving their goals.

5. Evaluating Risk

An entrepreneur must be aware of how to evaluate and solve risk. Several risks can
resurface in being an entrepreneur such as risk when saving, investing, or creating a new
business model. Remember, anyone can start a business, or be an entrepreneur, but not make
safer choices.

6. Root out all forms of scarcity

Focusing on something that you lack is the root of money problems for an entrepreneur. It
keeps them from reaching the highest level of growth. It repels wealth and the opportunities to
gain revenue.

7. Refuse to accept less than the value you offer

Always give fair pricing for the products and services you offer and never above the
value to attract customers and loyal ones too.

8. Focus on the ideal ones

Remember that not every client is fit for the business you offer so take and keep those
who seem to be your ideal clients. The path to wealth is composed of clients that will make the
business achievable and what you envisioned.

9. Step into your revenue-earning power

Always start your day focusing on your business and those that will allow you to earn
revenue. Always put your business first and never be shy to advertise and promote the business
you offer.
 IV. MONEY MANAGING

Managing money is crucial for business to succeed because it requires meticulous record
keeping of income and expenses, and discipline repayment of loans to avoid penalties and
maintain financial health. Keeping business accounts separate from personal finances is
important for effective financial management and decision-making.

V. START-UP FINANCE

To start a business, it is important to have capital that will finance all the costs we need
to build and start a business. There are several costs (1) Introduction and Marketing Costs, (2)
Running Costs, and (3) Investments.

1. Introduction and Marketing Costs

● Expenses focused on advertising and materials used before or at the start of the
business

2. Running Costs
● Expenses focused on raw materials and supplies for the duration of running your
business.

3. Investments
● Investments are always the money we put into other people's businesses for them to
grow, in the case of entrepreneurs, they invest in machinery.

VI. CAN WE RUN THE BUSINESS AT A PROFIT?

■ Profit. The difference between income and cost.

■ Income. All payments received by a business for the product or services it sells.

■ Cost. Expenditure in acquiring goods, services, or resources essential for conducting

business operations.

■ Total Costs. Raw material and bought products + labor costs + miscellaneous costs for
workshops, office premises, telephones, transport, bookkeeping + marketing + interest on loans.
 How to determine whether your business can run at a profit?

1. Calculate the Income

● For product business: Income = Number of Products of Sold × Price per Product

● For service business: Income = Number of Hours of Services Provided × Price per
Hour

2. Calculate the Cost

● Costs for buying raw materials or readymade products for sale.

● Costs for wages and labor.
● Miscellaneous costs such as training, transport, telephones, repairs, marketing
materials, bookkeeping etc.
● Interest on loans.

3. Compare Income and Costs

If Income > Costs, business is expected to make a profit.

If Income = Cost, business is expected to break even.
If Income < Cost, business is expected to operate at a loss

VII. ENTREPRENEURS PERFORMANCE ASSESSMENT

We have 3 things to discuss here related to sustainable wealth: the Income Statement,
Cash Flow Statement, and Balance Sheet. These are necessities that an entrepreneur must
know how to use and create to help them in their business and entrepreneur journey.

Cash Flow Statement

● From the term itself, this statement provides the entrepreneur with all the inflow and
outflow of cash. There are two methods for these, (1) direct method and (2) indirect
method. This statement completes the income statement and balance sheet.

Income Statement
● The income Statement, from the term itself, includes all the generated incomes and should
be prepared monthly. Other things computed in these are the incomes, costs of materials,
operating expenses, gross profits, taxes, and net profit.
 Balance Sheet
● This balance sheet is done yearly to indicate how good or bad the performance of the
business has been. This is a summary of the business’ assets, liabilities, and equity.

VIII. THE ROLE OF SUSTAINABLE WEALTH

In conclusion, sustainable wealth involves creating lasting success across various aspects
of life. It encompasses adopting an entrepreneurial mindset, managing money wisely, and
making strategic investments. By prioritizing long-term sustainability over short term gains, the
future will benefit and this can leave a legacy that goes beyond the abundance of wealth.

HOW TO GAIN FINANCIAL FREEDOM

Being able to spend more time on the things that are important to you rather than
dedicating the majority of your life to earning money is what it means to have financial freedom.
Working your way towards this goal at an early age can help you to break free from financial
stress. If you are planning to achieve an early retirement then it is best for you to be financially
independent. Discipline, perseverance, and careful planning are needed for this.

By implementing the methods we will mention can help individuals to start their way towards
financial independence and security.

● Creating financial goals:

0 According to Forbes defining your financial goals can help you to visualize what
financial success would mean to you.
○ Use the SMART Method. Your financial goals should be specific, measurable,
achievable, relevant, and time-bound.

● Income/Money Management:
0 Track your expenses and create a budget to help you identify where your money
goes.
○ Differentiate between your needs and wants
○ Make sure to allocate income towards savings and investments.
○ Planned use of important items of the income to reduce unimportant item expenses.
○ Stabilize finances.
 ● Reduce Debt:
0 Create a debt payment plan.
○ Use the debt snowball method or the debt avalanche.
○ Debt snowball method is paying off the smallest loans that you have first. While the
Debt Avalanche strategy prioritizes the ones with the highest interest rate.

● Start Investing:
0 Make sure to educate yourself first about investments.
○ Investing early can help you to benefit from compound interest.

● Having an emergency Fund:

0 Building a fund for unexpected expenses allows you to always have a back up
plan.

● Increase Streams of Income:

0 Explore ways to earn more money like side hustles, passive incomes and more.

● Financial Education:
0 Continuously educate yourself and be financially literate.
○ Stay informed about market trends.
○ Seek advice from financial advisors.

● Clear Goals with Right Mindset:

0 Setting goals with the right mindset about where to put your money will help to
increase your income and reduce risk or possible financial concerns.

Financial independence is a common goal that many people strive for. It involves being able
to enjoy life without worrying about money. Achieving this goal can be perceived as both easy
and difficult. For entrepreneurs, maintaining financial freedom is important if they have already
achieved it. By following the 8 methods outlined, entrepreneurs can broaden their revenue
streams and become completely stable and worry-free about money while earning profits from
their businesses. Implementing these methods takes patience, hard work, knowledge, and smart
financial decisions. They are also crucial for achieving financial independence as they provide an
idea of what needs to be done to find your way to financial success.
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