How Lithuanians Learned to Start a Business: 12 Basic Rules for Entrepreneurs

1994 The book “How to make money” published by the publishing house “Arėjas” shares the American experience and basic education for Lithuanian entrepreneurs, what principles to start a business and what mistakes not to make. We invite you to familiarize yourself with the lessons that the book sent to the first Lithuanian entrepreneurs to regain their independence.

“Free American entrepreneurship takes full advantage of man’s ambition, his desire to fulfill himself and establish his personality. With profit, the entrepreneur works for the public good. The history of American business knows many examples where that the most important motive for an entrepreneur was dissatisfaction with their material and moral position.This dissatisfaction forced them to think and act, encouraged them to seek new paths and solutions.

Most Americans view business generally without jealousy or hostility. The public and the state understand that several million entrepreneurs are a kind of “gold fund” and therefore do their best to make entrepreneurship flourish, “the book begins to share the idea of ​​entrepreneurship.

Not to mention Bernard Baruch, one of the richest Americans in nearly half a century. By mentioning their main theses, they share five rules for the newborn entrepreneur.

1. Decide firmly: I can earn money! Today in our country a person can become rich.

2. To earn money, think about it constantly: eat, walk, even at night when you sleep.

3. There are many areas of activity in which you could achieve good results. Search and you will find it.

4. Maybe you are wrong. Do not despair. Learn from your mistakes and from the mistakes of others. And start over from where you stumbled. Move along!

5. When you have an idea, think about it constantly, improve until you reach your goal.

Those who want to start a successful business are given a lot of thought-promoting attention: write down any ideas or thoughts that come up, even if they seem impossible or funny; analyze them and further develop your thinking.

Lack of self-confidence and fear of failure were identified as one of the obstacles to performing risky activities. However, they can also be fought successfully with a few simple rules.

1. Divide a big problem into several small ones.

2. Imagine that all are solved successfully.

3. When you hit a stone wall, stop and think.

4. Analyze your mistakes.

5. Try to turn every loss into a victory.

At the end of the book, the last 12 most important tips for entrepreneurs on how to earn and save money are also shared. While some of the rules may seem outdated in today’s world of services and technology, some of the tips are still useful today.

1. Invest money in what you know

To save your money and earn money through it, you should not do what is offered to you, but what you know yourself.

2. Never invest under pressure from others

When they ask for money, always postpone the answer until tomorrow; This is the rule that will protect you from many losses.

3. Make money on property, not projects.

The property has value in itself, whereas the value of a project depends entirely on its implementation. The property, though completely outdated or worn, is still worth it, and the most perfect project may not be worth a penny. Only those who have access to such luxury can invest in projects. Even the wealthiest shouldn’t invest more than 20% in them. your money.

4. Invest money only in what you can resell

Before buying, you should always think that your attitude towards buying may change, that the sale price may be determined by demand, not value, that the more exclusive and unusual an item is, the less likely you are to find a buyer. , because nine-tenths of the world are ordinary people.

5. Get your winnings

Better to make a small profit right away than to make a big profit later. Life is short. Therefore, do not miss any of the opportunities that the present gives you.

6. Listen to your banker

Don’t trust your humble experience or the advice of those who can profit from your losses.

7. Buy when prices drop – sell when it goes up

Most of us obey the herd instinct, which is one of the main causes of loss.

8. The money must be in circulation

The movement of capital is much more important than its size.

9. Borrow as much as you can to invest in the business

10. Borrow to grow your business, not to be proud

Never borrow money until you are sure that the costs will not only pay off, but will also pay off well.

11. Never lend

Saving money is not easier than shopping. That is why the rich do not tend to communicate widely, they are forced to be constantly vigilant. Lending money is an occupation for bankers.

12. Trust the entire industry and follow price fluctuations

This rule will be of great importance for those who know how to understand and take advantage of it. The essence of this rule is this. There is always an industry in decline. And there is always at least one company in this industry with many reservations. This firm has ordinary shares. It is more profitable to buy common stocks as they go up more than other securities. When a branch starts to go up, its shares will start to grow first. So if you buy the best stocks from the best brand in the worst industry, you can be sure of making a profit if you can be sure of something in this risky world.