Successful entrepreneurs should always embrace the art of giving as it contributes to the social improvement of the society. Large and famous organizations and business persons are always associated with philanthropy. From Bill Gates to the Rockefellers, giving to charity is always regarded as part of standard practice.
Entrepreneurs, however, often juggle between the two options of whether to give to charity or invest their savings. Maintaining a perfect balance of these two financial decisions is an important attribute that every successful entrepreneur should possess. What precisely should an entrepreneur consider when making a decision on whether to invest or to give?
Firstly, both giving and investment should be part of an entrepreneur’s financial decisions and planning. They both have prospective returns and advantages. An entrepreneur should thus uphold the right mentality, especially towards giving, as most fail to give as they feel that their donations do not account for their portfolio. Giving towards charity has a tendency of boosting entrepreneurs’ social standing.
From this foundational knowledge, it is evident that there is no reason not to engage in both financial activities. From a financial perspective, both giving and investing are normally done out of the profits or benefits anticipated. When determining how much to channel towards each cause, it is important to consider the strategic goals and benefits to be enjoyed.
For example, if an entrepreneur has around $10,000 to be budgeted for, allocating 10% of that amount to charity and budgeting for the rest in investment activities may be a suitable decision. Since both activities are regarded as recurrent to the entrepreneur’s financial decisions, balancing them both to ensure that each receives a fair share of the budget is a good idea.
Secondly, the entrepreneur should understand that giving to charity involves more than just donating money. Charitable donations can involve other powerful forms of gifts, including donating time and skills to the benefit of persons in need. Regarding giving as a way of alleviating someone’s suffering and making his or her life much better can help institutionalize and permanently instill the discipline of regularly giving in an entrepreneur’s life.
The next time you think of making a decision on whether to invest or give a portion of your savings, you should understand that both should fundamentally receive a fair share of your attention. Balancing the two perfectly imposes substantial financial, reputational, and social benefits in your future.