Author and Entrepreneur, Farnoosh Torabi
PSYCH YOURSELF RICH, is about a lot more than just positive thinking, but it is about mindset. What part does mindset play in an entrepreneur’s financial life?
Mindset is critical. In general entrepreneurs may need to be a bit more hands-on and forward-thinking with their finances than others, simply because they can’t count on a consistent paycheck. Entrepreneurs also need to embrace a bit more risk in order to succeed professionally and financially. A 2009 academic study found entrepreneurs, as opposed to corporate managers, engaged in more modest rule breaking as children. Since an early age you’ve probably become pretty comfortable with challenging convention. You probably know what it’s like to be sent to the principal’s office. You’ve had some practice developing, articulating and following through on your convictions. In Psych Yourself Rich, she calls this “breaking from the norm,” and it’s a fine – and often fruitful – habit to get into in life, whether one has entrepreneurial aspirations or not.
The greatest risk of all for most entrepreneurs, unmistakably, the financial risk. The threat may be that you never shore up enough money to properly invest in the business or that you never reach profitability, despite your time, good intentions, investments and deals. The book includes key steps to help you control and combat financial risks.