The start of a year often comes with many resolutions and expectations, but sometimes it brings unexpected outcomes that differ from what was anticipated.
If you analyze the word entrepreneur in Kinyarwanda (rwiyemezamirimo), you’ll notice it includes the term “commitment.” This is a powerful word that signifies taking responsibility and making choices.
Every decision you make puts you in a position of responsibility, whether you like it or not. That’s why in this article, we explain what concerns every entrepreneur should pay attention to.
- Capital is not profit
Capital refers to the money used to generate profits, but some entrepreneurs misuse it, closing off opportunities for growth.
Using your capital carelessly is like saying you no longer need to take your products to the market.
For instance, someone might invest a loan they received from a bank or elsewhere, but then misuse that money due to emotional decisions, diverting it to other purposes.
In business, it’s well-known that even when you make a profit, reinvesting part of it into your capital can help expand your operations. However, financial needs will always arise, and when you’re in need of money, you might end up using your profits instead.
What will show you that capital and profit are different is when your business runs out of resources and shuts down, and even the profits vanish.
- Lost time never comes back
Time is often equated with money, and wasting it is equivalent to losing money.
Time doesn’t stop—whether you work or not, it keeps moving. Some entrepreneurs are negligent in their work, showing up late, leaving early, or engaging in activities that don’t contribute to their business, abandoning their core operations.
When you set goals within a specific time frame and then add other tasks without allocating enough time for them, some plans get disrupted, leaving you regretting the wasted time.
According to Timewatch, a professional technology-focused magazine, only about 12% of people worldwide use their time effectively.
Entrepreneurs are encouraged to think carefully about everything they do and prioritize activities that generate returns, starting with the goals they initially set.
- Keeping up with the times
One way to stay competitive is by staying informed. Essential business knowledge includes new products entering the market, changes in prices, and advancements in technology.
Every entrepreneur is expected to have a budget for their business and strive to undertake activities that will attract customers.
The behavior of businesspeople determines the profits they can earn or the losses they might incur.