Financial Security for Entrepreneurs: 9 Ideas to Get It

The importance of financial security for entrepreneurs appears, in light of the rapid changes that occur in the fields of entrepreneurship, and is heading directly towards the search for protection and safety from market fluctuations and life emergencies. Therefore, searching for ways to achieve financial success is one of the priorities that entrepreneurs seek as a lifeline to achieve freedom and financial security.

In this article, we will learn how to reach financial security for entrepreneurs and its importance, and we will review the most important ideas that lead entrepreneurs to achieve financial goals, while researching the areas and advantages of financial security, financial problems and ways to overcome them. 

What is meant by physical security for entrepreneurs?

Financial security for entrepreneurs is not related to the question of the amount of money or the number of millions that the entrepreneur can have to achieve financial security, but with another more important question about the extent of the stability of his financial resources, and not to stumble financially if he stops engaging in any activity for a period. One of the consequences of achieving financial success is the financial security of entrepreneurs.

The financial security of entrepreneurs means the amount of money that comes from assets, which should be more than expenses and expenses. The link between physical security and the field of entrepreneurship is due to the role of entrepreneurs as makers of investment businesses that stem from innovative ideas based on risk tolerance, and have the ability to succeed on the ground. These businesses require an effort from the entrepreneur to establish the business and strengthen its foundations, to then provide a constant income without the need for a job or work salary, and this income is sufficient to cover all the expenses of entrepreneurs.

In other words, the entrepreneur creates a list of investments (assets) in the form of channels, all of which flow with money in the direction of his financial portfolio, without allocating time and effort to earn it, and it gives him many options and great comfort in dealing with money.

The importance of physical security for entrepreneurs

The importance of financial security for entrepreneurs appears in that it gives many choices in dealing with money, frees people from the pressure generated by huge bills and the necessities of life, and makes the entrepreneur’s thinking rational and logical in dealing with money, because it is based on freedom to make decisions motivated by the desire to preserve on this security. This also includes exploring and investing in new areas that offer greater opportunities for success.

Financial security also gives entrepreneurs a life full of choices, more time to enjoy life with family and friends, and strengthens the entrepreneur's financial situation and conditions in the event of any emergency. It also contributes to liberating people from the lists of employees who exchange their time and effort for low wages, and transferring them to the field of entrepreneurship, to use time in serving financial goals and achieving financial success.

How do entrepreneurs reach physical security?

Financial security for entrepreneurs is achieved by careful planning that begins with setting a goal that helps to achieve this safety, and it starts from a question about the reasons behind the desire to achieve physical security. Among those questions:

Is this desire stemming from in order to achieve financial freedom and expand the circle of spending and consumption?

Does it stem from your desire to quit your current job and escape the misery of a job?

Is it motivated by your passion to present a new idea to serve the community?

Are you looking for quick profit? Or are you looking for long-term profits?

Defining those goals and their clarity will give you the power to work on your idea to achieve financial security, because it will make your work more organized, and go according to a tight program, which makes every step you take in the field of business is realistic, and the consequences and results are calculated. It is these goals that carry your idea to translate it into reality, based on several points:

First: Create a competitive advantage for your project

The product or service that is brought to the market must be of high quality, and a significant competitive advantage, to establish your company's name in the market, and to expand the customer base on a daily basis. And know that the quality of the product you put in the market is the biggest advertisement you provide to your company and the growth of your business. So, you should be aware of how to choose the competitive advantage for your business.

Second, the target market

A set of indicators is defined as the target group of customers: rich, middle, poor or all segments of society. Then the age, gender, and consumption trends of individuals. The project idea must meet the needs of the target audience and the market need for such investment. Do not neglect the study of competitors, their ways of targeting customers, and their strengths and weaknesses.

Third: Employed competencies

Employed competencies are the fuel that drives the vehicle of financial success and the financial security you seek, as they are the basis of the work system. Therefore, it is necessary to hire people with skills and abilities that are in line with the specificity of the services or products you provide, by relying on the skilled people rather than relying only on those with certificates. You should also open up prospects for hiring freelancers and freelancers, and in this regard, you can rely on the Khamsat website, the largest Arab market for buying and selling micro-services, to hire freelancers with skills that serve your business.

Fourth: Customer acquisition strategy

There are many ways to win potential customers and convert them into actual customers in various forms of marketing, such as social media marketing, mobile marketing, or email marketing. The most important thing here is the ability to analyze the needs of consumers, and strengthen the connection with them, to turn them into permanent customers of the company.

These points are the way to achieve financial security for entrepreneurs, through which you can build investments on solid foundations that support your financial position in the world of entrepreneurship and in life in general. These are important points in building a basic business for you as an entrepreneur, but they are not sufficient to be certain of achieving financial security, because the most important indication of achieving financial security for entrepreneurs is the diversification of income sources, that is, the flow of money from several assets.

And in order to diversify the sources of income, you can invest money in different ways by investing in many areas, such as gold or digital currencies. Also, investing in real estate as a fixed asset involves abundant profit, enjoys an unrivaled reputation, and is invested in it greedily as one of the most important areas that investors have known since ancient times. Investing in real estate does not boil down to buying a housing unit, but rather takes many forms that bring huge profits to the investor. There are two ways to invest in the real estate market:

1. Buy, sell or rent

It includes buying, renting or selling real estate, such as buying a specific property for the purpose of sale, or buying lands suitable for construction, or lands for commercial or industrial use, or rehabilitating and reselling real estate. These properties may be apartments, homes, office buildings, vacation properties, land, or condominiums.

2. Investing in stock markets

Investing in stock markets is done through one of the following methods:

Shares of real estate companies

Real estate is divided into small shares, and according to the number of shares purchased by the investor, which determines his share in a company. You can diversify in buying from several companies, and owning different and various parts of the shares of real estate companies.

Real Estate Investment Trusts (REITs)

Real estate investment funds are investment funds that manage various real estate portfolios, and buying shares in them helps to achieve important financial returns, because most of their operations are either by selling, buying, renting, or mortgaging. It includes various properties such as: hotels, apartment complexes, shopping malls, warehouses, and apartments.

Exchange Traded Funds (ETFs)

Exchange-traded funds are based on collecting funds from investors for the purpose of investing them in one fund, as a group of assets is combined that allows traders to trade in several markets and a variety of assets such as stocks, bonds, commodities, currencies and others. Once one share is purchased, the investor owns a share of the investment basket in the fund. Therefore, it is an important means of spreading risk, in order to pave the way for the financial security of entrepreneurs.

Investing in exchange-traded funds, unlike physical real estate, does not require maintenance, paying high taxes, insurance, or real estate broker commission, but only paying their market price and waiting for profits. Also, the ease of getting rid of them in seconds is tempting to invest in them, unlike real estate that takes more time, and may be sold at a lower price than expected.

9 Ideas to Get Financial Security for Entrepreneurs

Financial security for entrepreneurs appears as an unattainable goal that requires perseverance and great effort, while working with these ideas makes it easier for entrepreneurs to reach the desired goal and achieve financial success. Behind the great goals stand small ideas and reasons. Here are some ideas for financial security for entrepreneurs:

1. Diversify your sources of income

There are many types of income, the most famous of which is the income that an individual earns from doing a job or a job, and the income resulting from a specific investment, that is, the difference between buying and selling a service or a product such as buying shares. There is what is known as passive income, through which an individual earns money without spending the effort and time to collect it, such as renting a house.

Despite the multiplicity of types of income, each type provides several sources of making money, but passive income remains one of the main reasons for achieving financial security for entrepreneurs, as money enters the investor's portfolio without making any effort. The flow of money increases the more entrepreneurs know the shortcut to achieve pioneering projects that require only a simple effort to create them, while they return abundant profit after that, and without the need for permanent presence and work continuously, as is the case of the employee who sells his effort, time and knowledge in return for a fixed income.

It is worth noting that the best start in the world of entrepreneurship can be for a person who has a reliable and continuous source of income until the idea of ​​the project he is betting on succeeds, then work to achieve another idea.

With this success, getting rid of the job constraints will become very easy, because the entrepreneur is no longer working for money, but money is working for it. Therefore, diversification of income sources is the biggest guarantee that protects against market fluctuations and life changes, which helps to achieve financial security for entrepreneurs.

2. Invest smart

Achieving an effective and high-quality investment that requires the exploitation of the knowledge, skill and experience that an entrepreneur is supposed to have in the field he masters. It makes no sense for a person to invest his money in areas he does not have the slightest idea or experience in, or to invest with the aim of making a profit. Quick, there is no business logic for the myth of quick and easy profit.

The success of entrepreneurial projects requires investing intelligently, entering with experienced people who have achieved great achievements, investing with them, and learning from them and from the ways they target customers, so that the risk margin is limited in consequences. And be sure not to be a reason to kill your project by investing your money in the unknown, as you must always be aware of the size of the risk that you will take. Simply; Do not put all your eggs in one basket. For example, if you choose to invest in the stock market, you can rely on:

Risk Management

Where risk management is based on diversification of investments and not betting on one investment, the profit is a surplus gained from one of the investments in which you put your money, even if other projects do not generate any returns. In the event of a loss, they will compensate each other. In the worst case scenario, you will keep your capital in case of severe market tremors and fluctuations.

3. Maintain your strengths and treat weaknesses

To strengthen the position of any project in the field of entrepreneurship, it is necessary to focus on the strengths of the project, which can be reflected in: human resources, marketing strategy, customer targeting, work methods, location, and the degree of competitiveness.

Recognizing the strengths of the project starts with asking a very important question: What makes your project different from the competition? Starting from this question, you will put your hand on your strengths, to work on strengthening them to develop your projects, and take advantage of the opportunities available to enhance your brand's presence in the market.

The value of the product or service you provide, or the efficiency of your employees may be one of your strengths, but on the other hand, your marketing strategy can be weak, and here a comprehensive analysis of the weaknesses must be conducted and addressed before they develop and turn into an obstacle that destroys the project from the inside, and it is destroyed with it. Your dreams of achieving financial security.

Here we are obliged to ask another question: What are the things that affect the development of your business? For example, it may be difficult to start a leading company if you do not improve the marketing of your brand, because you will not be able to communicate the idea of ​​your products to a wide group of consumers. To bypass this obstacle, relying on digital marketing and the great benefits it provides will help you target a wide base of consumers and customers.

Thus, addressing weaknesses and strengthening strengths contribute to achieving financial security for entrepreneurs, and improving the financial flow of companies, by increasing profits and investing them in assets and other sources of income that strengthen opportunities for accessing physical security.

4. Save more than you spend

The spread of electronic stores, major commercial markets, the prevalence of consumer culture, shopping obsession, the desire for luxuries, and the exaggeration of the way of living more than the salary can bear, made people free from saving and reducing their expenses as much as possible, although saving is one of the most important reasons for creating wealth and financial success. . Savings here are aimed at politeness in managing the financial income according to the requirements of life, to save money to carry out a project, or to use it in emergency circumstances.

In a study conducted around the world and included 120 countries about self-made people who built their wealth from scratch by relying on themselves, researchers found three characteristics common to all these people, the most important of which is that they are permanent savers in all circumstances, a trait that “George Clason” tells us is the reason behind The emergence of the richest man in Babylon, he built a huge fortune by keeping a part of his revenue, although this part did not exceed a tenth of what he was earning. At the same time, he was enjoying his life and not exhausting himself with saving too much.

George Clason says in his book about the richest man in Babylon:

I found the way to get rich when I decided to keep a portion of my income. And you should too

5. Focus on increasing assets

A hidden conflict rages between assets and liabilities, and this conflict determines whether the entrepreneur or any ordinary person will achieve wealth, or will remain throughout his life as a mouse spinning in a wheel that will not stop until he stops moving, to throw him just without protection in the face of life's problems. The presence of a primary source of money necessarily dictates the direction in which it flows, whether in the direction of assets or liabilities, which gives an indication of the possibility of achieving financial security for entrepreneurs or not. The following explains the difference between the terms assets and liabilities:

assets

It is every source of income that provides you with money without making any effort to earn it. The more money is directed and invested in assets, the greater the amount of money flow into your portfolio, because you will submit the money to your will, and control your expenses. Among the most important of these assets are: real estate, stocks, gold, bonds, and intellectual property.

opponents

It is everything that takes money out of your pocket, and it is associated with all kinds of expenses and expenses that drain money, and do not leave room for its development. Most of those who control the liabilities of their lifestyle suffer from frequent and continuous financial crises that result from them: debts, bankruptcy, poverty, or always living under the pressure of loans. The most important of these liabilities are: taxes, purchases, car loans, entertainment, real estate loans, and consumer loans.

The seasoned entrepreneur is the one who works to achieve financial security by diversifying the sources of his investment portfolio, focusing on increasing assets, and letting the direction of the financial flow tell him his status if he is on the path to creating wealth and material security, or is he going against the trend?

in this context; Robert Kiyosaki says in his book Rich Dad Poor Dad:

The rich buy assets, the poor only have expenses, while the middle class buys liabilities and thinks them as assets.

6. Learn the secret of the Babylonian tablets

One of the most important reasons for the loss of financial security is the absence of financial intelligence in dealing with sources of income, and the desire to climb the social ladder, even as a matter of deceptive appearances, especially with the absence of financial assets that support the expenses of the individual, which makes you easy prey in the hands of debts. It is not possible in any way to achieve financial security for entrepreneurs or others who are trying to enter the field of entrepreneurship, and the specter of debt haunts them from all sides.

It is clear that most people work day and night to pay off the debts that burden them, but to no avail, although there is a simple and effective solution that rises from the ashes of a civilization more than five thousand years, that solution recorded on the ancient Babylonian clay tablets, which provide a magic recipe of three tips for all the burdened With debts on the ground:

Save a tenth of the revenue.

Spend seven-tenths of the revenue on your necessities and living requirements, so that life does not lack happiness and enjoyment.

Divide the remaining two-tenths of the revenue equally among the creditors, to satisfy all debts.

Thus, the salary equation takes the following form:

salary equation

It is a solid financial plan that demonstrates great financial experience and culture, facilitates the extraction of debts in small amounts, and leaves plenty of room for daily spending and a dignified life. And most importantly, saving money for the future that will enable you to enter into entrepreneurial projects that will lead to financial security.

7. Hold on to your passion to resist failure

Failure to create and manage entrepreneurial projects is common and common, as about 90% of startups fail in their beginnings, meaning that only 10% of companies can succeed. The field of entrepreneurship is a set of obstacles that once you cross one, the other appears. Although this is a good sign that the project is on the right path, every obstacle that is overcome is a building block for your position in the market.

But sometimes, many obstacles weaken the resolve, and the entrepreneur is only motivated to continue working by passion for what he is doing. Passion for an idea inevitably leads to devoting effort and time to achieving it.

Passion is what makes the entrepreneur wake up early to chase his dream, to turn failure into success, and to face any risk that tries to sabotage his plans. And the success in taking a risk, with all the difficulties and obstacles that it bears, builds greater opportunities for the development of any project and gives it a strong impetus and a qualitative leap in the market. On the importance of risk, Nietzsche says:

To reap from existence the most beautiful of it; live in danger

8. Keep money flowing into your wallet

Money multiplies for whoever finds a way to grow it, and the chances of achieving freedom and financial success multiply with it. It is this multiplication that ensures the financial security of entrepreneurs. This goal can be achieved through two points:

earn more

By diversifying your business fields and sources of income, developing skills and experiences that help you earn more, and investing in learning, to keep pace with the changes in the field of entrepreneurship and the economy. When you increase your knowledge capabilities and field experience, it will become easier for you to seize opportunities that achieve the financial goals that you seek.

spend less

And by rationalizing spending by focusing on the necessary requirements of living, moving from daily purchase to weekly purchase, and avoiding credit cards, as they encourage consumption, and rationalizing subscription and billing expenses, while monitoring the amount of spending from income to see where your money flows.

Monitoring your expenses will lead you to rationalize consumption, earn and profit, helping you to keep the money flowing towards your wallet.

9. Pay yourself and develop your earning potential

Entrepreneurs are distinguished by a touch dominated by innovation and creativity, which has made entrepreneurship gain a great momentum and fame that requires entrepreneurs to continuously develop their capabilities and skills, to keep pace with developments in the business sector, and to be familiar with the variables of the political and economic arena and their repercussions on the markets, such as fluctuations in oil prices, trade wars, and geopolitical conflicts, tariffs, interest, and raw material prices.

Capacity development is linked to an important point that most entrepreneurs do not pay attention to, which is that you can pay yourself. If you pay everyone at work, at home, and even to the bank, why do you forget to pay yourself? Although you are the focus and basis of this work. This is not a matter of luxury, but to take a strengthening dose to continue the path, to enjoy the money you earn, and to motivate you more to work and develop your abilities to achieve the financial goals that you monitor on the horizon of achieving financial security.

This combination of ideas is enough to achieve financial security for entrepreneurs, and for every investor, regardless of his field of work and the size of his project, or any individual who seeks financial success in his life, escaping from the trap of debt, and providing protection from life emergencies.

High-income areas of entrepreneurship

Knowing the high-income areas to target is the biggest supporter of financial security for entrepreneurs. Entrepreneurship includes many areas that are difficult to divide or define, although it can be distinguished between them as follows:

First, the traditional areas of entrepreneurship

The areas of traditional entrepreneurship are full of great opportunities that generate huge amounts of money if the entrepreneurs make good use of them, because they are the basis in the business world, such as investing in real estate and energy.

Second: The areas of digital entrepreneurship

The fields of digital entrepreneurship are based on the use of digital skills and technologies to build projects and improve business operations based on the Internet. It provides many advantages by facilitating the establishment of businesses and following their development, and reaching the largest number of consumers anywhere in the world, with huge potentials to invest in areas that are experiencing steady growth due to the continuous development of technology. These are high-income areas, for example:

E-Commerce

And within the scope of e-commerce are electronic stores, websites, and blogs that are active in the process of electronic buying and selling, such as: Amazon or eBay.

Education and training platforms

Education platforms are witnessing an unparalleled spread and growth, due to the increasing demand for self-learning and formation. It offers specialized courses and lessons and is a source of high income. In this regard, Hassoub Academy is one of the most important and largest learning platforms in the Arab world, offering specialized courses in programming, lessons in programs of all kinds, and various articles on the latest developments in technology.

mediation sites

It is also witnessing its spread, as it is trying to fill a large void in the market by linking the producer and the consumer, such as call centers, employment and freelancing sites such as the Khamsat platform, the largest Arab market for micro-services.

Advantages of achieving financial security for entrepreneurs

The pursuit of financial security for entrepreneurs has many advantages that are positively reflected on the entrepreneur, such as:

1. Achieving freedom and independence

People who go to create their own businesses have within them a flame that yearns to work, and that glows only by getting rid of the job’s constraint, they prefer facing the difficulties that the establishment of a pioneering project brings than bearing the cycle of comfort in the job. There is no doubt that the success of their investment ideas leads them towards achieving financial freedom and independence in their life affairs and decision-making.

2. Self-Proof

The success of the investments that the entrepreneur takes risks to establish proves to society the individual’s ability to achieve financial success, which in turn gives him fame and luster to his name, thus worthy of the title: Entrepreneur.

3. Develop financial skills

Achieving financial security for entrepreneurs is a long way. The entrepreneur learns a lot of skills through his various stations, such as: ways of dealing with money to earn, spend, save, follow up on financial operations, financial budget status in terms of liquidity, and employment of available financial resources. This daily handling of money builds entrepreneurs with a great financial culture, which helps maintain the financial security of entrepreneurs.

The obstacles and difficulties faced by entrepreneurs contribute to refining their personalities, which are enhanced by many characteristics, such as: flexibility, optimism, the ability to build relationships, negotiate, face risks, persuasion, decisiveness, and implementation.

Challenges in the path of financial security for entrepreneurs and ways to overcome them

Financial problems represent the main reasons for the failure of entrepreneurs and startups, such as limited liquidity, debts, neglect of financial reports, failure to pay bills on time, and confusing project finance with private money. In research conducted by the US Bank, it was found that 82% of start-ups failed due to poor cash flow management skills, or a poor understanding of cash flow.

Perhaps the most prominent of these problems is related to the provision of capital or sufficient liquidity for the project. If the entrepreneur is passionate about the idea that he seeks to convert into a project that enters the trade and business market, and believes in his ability to translate it into a successful project on the ground, then it becomes possible to overcome the problem of financing by relying In many ways, including:

1. Find a partner

When looking for a partner, it should be a partner who believes in your idea and your ability to implement it and make it a success. This partner can be from your circle of acquaintances, or from businessmen who believe in the feasibility of emerging projects, and are eager to invest in pioneering businesses. At this stage, you only need to prepare a detailed feasibility study for the project. You can use the experts from the feasibility study service providers through the Khamsat platform for micro-services.

2. Get help from family and friends

Hiring family and friends can be a safe way to get the funding needed to start your business, but try not to let the trust they put in you, so that your loss will not be doubled.

3. Self-employment

Freelancing online is a source of earning money depending on the skills that the individual masters. It is one of the most important means of achieving fixed income. Freelancing sites can help you raise all or part of your project funding. You can easily hire yourself through one of the freelance platforms such as the Fiverr platform, through which you can provide your services and skills, and make profits.

4. Crowdfunding

There are several crowdfunding platforms for projects that entrepreneurs can get funding for their ideas. These open platforms provide a successful mechanism for raising funds for entrepreneurs in exchange for donations, a portion of the profits, financing by borrowing, or financing against shares. Among the most important Arab and international platforms: Zoomaal, Yomken, Indiegogo, Lendingclub. There are dozens of other platforms that can be a successful solution to your financial problems as a budding entrepreneur.

Financial obstacles may be the most prominent challenges that impede achieving financial security for entrepreneurs, but there are hidden problems that may accompany financial difficulties, which may eventually lead to failure and surrender, including sacrificing your time, health and family, as you will discover that you work more than you expected, especially if he knows Tension makes its way into the circle around you. Also growing loneliness, fear of society's view of failure, pressure of responsibility and exhaustion of trying to stay vigil all the time, because the market is constantly changing.

Examples of profitable entrepreneurial projects

There are many entrepreneurial projects that started from scratch as impossible ideas, and ended up becoming giant companies that achieved financial security for entrepreneurs, and were able to acquire various businesses in their fields of operation, such as: Amazon, Facebook, Tesla, Google, Starbucks.

Most of the successful entrepreneurial projects started with a simple and innovative idea, and then managed to find a foothold in the market, which knows a continuous tendency towards the major opportunities offered by technology. Therefore, the web world is full of ideas for innovative projects that you can start without leaving your job, and provide good profits and financial incomes, such as setting up an online store, digital marketing companies, language learning centers, 3D printing, or delivery companies.

It should be emphasized that the success of entrepreneurial projects is linked to the development of new ideas and additions, so that entrepreneurs do not fall into the cycle of repetition of consumed ideas. The idea of ​​the Clubhouse application represents an example of innovative ideas in the field of application development, based on its reliance on conducting conversations and audio discussions through various virtual rooms, in which participation can only be made by invitation, which made Internet users flock to use it.

Finally, achieving financial security for entrepreneurs is a goal that requires a solid plan to reach it. For that, we have highlighted in this article the most prominent ideas that will support your access to physical safety, and we have pointed out the obstacles that may stand in your way, and how you can overcome those obstacles. Most importantly, you have the passion that drives you, and the determination that drives you to achieve your financial goals and reach financial security.