How Should Entrepreneurs Think About Investment Planning

Tiffany and Jarrod discuss how entrepreneurs should think about investment planning and key elements to focus on when analyzing investment plans.

What this episode is about: Entrepreneurs can be creative with their investment planning, and their investing style should enable their lifestyle.

1. Welcome and Successful Sip [1:08]
2. Introduction of the topics of investment planning, placing business equity at the center of an investment plan and analyzing how entrepreneurs should think of investment [2:37]
3. Discussion of the point of investing, whether your investing style enables your lifestyle, the core pillars to your investment plan and how often to review them [5:34]
   1. Understanding cash flow, asset values and risks
   2. Understanding your expectations
   3. Making sure you’re emotionally prepared for inevitable investment failures [6:27]
4. Dialogue about having an annual evaluation of your business equity to cover these topics:
5. Thoughts on how to prepare for your strategies if an opportunity doesn’t align with your investment plan and a question, “What’s your thesis?” Analysis of these topics using an example of a home purchase in Vancouver [8:53]
6. Discussion of managing short term and long term goals by backing into them and examples of being proactive and creating a roadmap to your plan [12:12]
7. Emphasis on understanding that investment planning is different for entrepreneurs (as compared to W2 workers) and that they can be more flexible and creative with their equity at the center of their entire strategy, with large and variable cash flows [13:57]
8. Discussion of the uniqueness of each entrepreneur and how each one’s plan has more flow, complexity, risk and individuality [16:14]
9. Analysis of how each entrepreneur’s need for cash and cash equivalents are also unique - various examples of this and dialogue about having good liquidity planning and cash flow maps [18:25]
10. How often should you review all of this? [21:22]
11. Your stage of life or unexpected big transaction can change your plan and also trigger a review. Thoughts on balancing personal life with entrepreneurial life [23:28]
    1. Your investment plan is a tool to serve you
    2. Don’t look to outside sources such as the financial media for advice [26:21]
12. Takeaways:
13. Conclusion [28:40]

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