The business scene is home to some of the world’s most lucrative and prominent individuals. While these people’s raw talent and innate abilities have helped them in their respective entrepreneurial journeys, other skills that catapulted them to the summits of their careers are those that they had to actively learn and acquire through the help of external tools and resources. In an interview, Wayne Liang of Liang Holdings talked about the importance of teaching aspiring entrepreneurs valuable skills and lessons geared towards improving their financial literacy.
“After nearly a decade of entrepreneurship, I believe financial literacy is crucial for the success of every entrepreneur,” said Wayne Liang. “It’s unfortunate our educational system doesn’t teach us much about money. Formal education shows your ability to follow instructions and tests your memory. Self-education and experience is where you’ll learn most of your life skills,” he further explained.
Wayne Liang shared that he got some financial literacy lessons while he was younger, but they were not enough. “Growing up, my parents taught me to save every dollar possible and to only spend when absolutely necessary. While it’s better to do this than to recklessly spend money, that’s all I was taught about financial literacy,” he shared.
Still, his parents’ advice was the start of his financial journey, and Wayne set out to learn more. “Financial literacy empowers entrepreneurs to take responsibility for every dollar earned and spent” he states, as it would help these individuals set their focus on costs and cash flow, which are the two most important numerical factors to any business.
After being in the industry for years, Wayne Liang discovered that there are many layers to financial literacy, which go far beyond the realms of saving money, budgeting properly, and investing money. There are two key points he wants to impart to other entrepreneurs, and it is to “understand your numbers” and “review your track record.”
When it comes to understanding numbers, Wayne Liang said, “It’s critical to understand the data and analytics you’re receiving, as it directly correlates with the activities of your business.”
“Being financial literate can help determine what’s working and what’s not working within the business. You have to interpret certain data, what they mean, and how to change them, or you’ll be operating blindly,” Wayne Liang explained.
In reviewing a particular track record, it is imperative that one keep some documentation of their monthly statements and all operating numbers. This way, they can determine where their company stands and where adjustments need to be made.
As someone who has always been passionate about the importance of financial literacy, Wayne Liang has made it his mission to share his wisdom with others. He believes that genuine success can only be achieved when one chooses to help others reach significant milestones in their careers.
Opinions expressed by CEO Weekly contributors are their own.
