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Think life like a business

Stage I - The startup


At budding stage, you acquire the capital that you need and plan for the "business" you want to do by choosing the education / course of interest to you. If the course you graduate from is of hot demand, you will find yourself some very good offers. 

You are not afraid to try new things and fail.

You want to see what works and what doesn't.


Stage II - Stabilization and expansion


At this stage, you already have the foundation for your "business". You start to acquire more skills, knowledge, network and experience relevant to expanding it and see its Net Asset Value grow.

While doing so, you gotta watch and calculate your 'free cash flow' so that you can better plan for investments or save up for the rainy days. 

Operating cash flow would be your daily expenses and investments made. You could diversify your "business" by taking up courses and picking up skills that would allow you to side-track should your main "business" fails or do some side hustles.

You might easily fall into debt trap if you invest or buy things that do not add value to your business.

Don't forget to pay back in dividends to your shareholders to show gratitude (those who worked for you or benefited you along the way).


Stage III - Acquisition or merger


That is when you decided 2 is better than 1, despite the risks involved.

Acquisition is when you gain net asset by marrying someone with similar goals and abilities. Merger is the forming of new partnership.

"Businesses" with better book value usually get a better acquisition offer. Duh.

Some businesses after merger or acquisition prosper with their common vision, mission and values bringing out a brighter future (life). 

Some merger would fail to thrive as vision, mission and values did not coincide and the assets eventually got depleted. With that, you have no choice but to go back to stage II.


Stage IV - Harvest or crisis management


 This is when your business goes from fully on track and stable to slowing down. You enjoy golden years and could retire on stable income (from investments, savings and / or children).

On the other hand, you could also face crisis if you fail to acquire enough assets and back up solutions (eg. insurance) for a retiring business.


Stage VI - Bankruptcy / handover


This may happen at any time. One of those unfortunate and unforeseeable circumstances.

This is the time of either handing over your legacy to the future generation or ending up with nothing to pass on.

RIP.

***
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