5. Put 20% of your net as­set value at risk. Scale and grow, or fail, and fail fast.

Finweek English Edition - - ENTREPRENEUR -

Mur­ray Legg, co-founder of Retro­vi­ral and Webflu­en­tial (dig­i­tal and so­cial me­dia agen­cies): En­trepreneurs usu­ally start work­ing on launch­ing their own business be­fore they leave the support and fi­nan­cial sta­bil­ity of an ex­ist­ing job. Be­ing will­ing and able to risk los­ing a sig­nif­i­cant por­tion of your net wealth is im­por­tant when mak­ing the decision to be­come a dig­i­tal (or any type of) en­tre­pre­neur for two rea­sons.

Firstly, the enor­mity of the task that they have un­der­taken – to build a new business – must be scary enough to keep some­one fo­cused on their ob­jec­tive 24/7, work­ing hard liv­ing their dream all day, and up at night keep­ing on top of how they’re go­ing to make it a suc­cess. It’s putting their skin in the game with noth­ing held back that puts the business on the map of their per­sonal wealth port­fo­lio, and that will make the re­turns sig­nif­i­cant enough to jus­tify hav­ing left their se­cure job in the first place.

Se­condly, dig­i­tal is a fast mov­ing in­dus­try where busi­nesses must scale and grow, or fail, and fail fast. En­trepreneurs should be pre­pared to spend on mar­ket­ing and sys­tems and hire peo­ple to help them build the business – they can­not do ev­ery­thing by them­selves.

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