Business and Investment: Why the Right Mindset Matters
Yesterday, a brother asked me,
"I have some money to invest. What business should I start?"
I gave him a quick piece of advice at the time. However, this made me realize how important it is to understand business and investments in today's world. Many Muslims either invest in the wrong places because they lack proper guidance, or they start their own businesses without adequate preparation and end up losing their hard-earned money.
There is undoubtedly great barakah (blessing) in doing business. However, running a successful business is not as easy as many people imagine. Before entering business, it is essential to learn how businesses actually work.
Think about it. Before getting even a regular job, where there is relatively little financial risk, people spend years completing graduation, professional courses, internships, and training. Yet when it comes to starting a business, many people skip all of that preparation.
Business Mindset vs Employee Mindset
To become a successful businessman or investor, you need a business mindset. Most people who have worked in jobs naturally develop an employee mindset. Understanding the difference between these two mindsets is one of the most important steps before starting a business. I have even heard people say,
"From today onwards, I've decided to do business, so now I have a business mindset."
Unfortunately, it does not work that way. Simply deciding to start a business does not automatically give you business skills. Many people feel confident because there is no boss to answer to, no interview to pass, and no one supervising their work. It feels like everything is under their control. Ironically, this false confidence often becomes the biggest reason for failure.
Learn from Experienced Business People
A successful businessman is usually someone who has spent time working with experienced entrepreneurs, either as an employee, assistant, partner, or in some direct business role. Business owners make decisions differently from employees because their responsibilities and risks are completely different.
To explain it simply, a businessman is willing to take responsibility and accept risk. If work needs to be completed, they may stay in the office until late at night to finish it. An employee, on the other hand, generally looks forward to finishing work and going home once office hours are over. If someone spends their entire life thinking like an employee, they cannot suddenly become a successful businessman overnight. Business requires knowledge, practical experience, patience, and courage.
Investment Is Not Risk-Free
Many people think,
"Business is difficult. Instead, I'll simply invest in someone else's business."
They believe investment means giving money once and receiving profits every month without doing anything. This is also a misunderstanding. We have seen many investors who put their money into businesses but continue thinking like employees.
Their expectations are usually:
- Payments should arrive exactly on time every month.
- Profits should never decrease.
- Returns should always keep increasing.
- If one payment is delayed, they immediately demand a refund.
This is still an employee mindset. Business does not work this way. If you were unwilling to take business risks yourself and preferred the security of a job, you should not expect investment to be completely free of risk. Every business experiences ups and downs.
The Right Mindset for Investing
Before becoming either a businessman or an investor, you must accept one important reality. Profits may come, and they may not. There is always the possibility of loss. This does not mean investing carelessly.
Your money should always be invested with capable, trustworthy, and knowledgeable people. Whether you choose an established company or a startup, make sure the people managing your investment have the necessary skills, business experience, and a proven understanding of the industry.
Investing in people with knowledge is often more important than investing in ideas.
Think Long Term
Business and investment both require patience. A reasonable investment period should generally be at least six months to one year. If there are temporary delays or unexpected challenges, remain patient. Real businesses take time to grow. Very few meaningful results are achieved within just two or three months.
Choose Your Advisors Wisely
Not everyone who owns a roadside shop is an experienced businessman. Many small shops open today and close within a few months. Likewise, many roadside vendors are simply daily wage earners trying to earn a living. That does not automatically make them business experts.
Unfortunately, many people seek business advice from individuals who have never built or managed successful businesses themselves. Always seek guidance from qualified professionals such as Chartered Accountants (CAs), experienced entrepreneurs, successful business owners, or people who have spent years working in business.
The right guidance not only increases your chances of success but also helps protect your hard-earned money.
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