Further from our recent post regarding the
juggling act, I stumbled upon this inspiring and informative article in the recent issue of
Notebook Magazine, March 2009, and thought I would share....
Kristina Karlsson is the founder of
kikki.K stationary stores, one of Australia's fastest growing small business's.
Originally from Sweden, Kristina’s previous work experience ranged from a tour bus guide in Europe to a nanny in Beverly Hills, but it was a move to Australia with her partner, Paul, that sparked the idea for her successful stationery company after she struggled to find beautiful designer stationery like she was used to in Scandinavia.
Kristina financed her first range by borrowing $3,000 from Paul and after it proved a success, she took the leap to open her first store. “I convinced Paul to sell his house to finance the opening of our first store [in Melbourne]. There was definitely a lot of risk, but I was passionate about my concept, and failure was never an option,” she says. When it comes to getting what you want financially, “commitment and sacrifice are essential,” adds Kristina, who also worked two other jobs in the early days of establishing her business. Kristina says it was this risk, coupled with the limited finances in those early days that taught her how to get the most bang for her buck where money was concerned.
Her hard work paid off and in 2007, Kristina won the Telstra National Young Business Woman’s Award for her stores. There are now 31 kikki.K boutiques in Melbourne, Sydney, Brisbane, Perth, Canberra, Auckland, Wellington and the Middle East, and Kristina says Copenhagen, Stockholm, Tokyo and New York are also on the cards in the future.
Kristina believes financial freedom is not possible unless you have a clear goal in mind, are willing to make sacrifices and are prepared to do whatever it takes in order to be in full control of your money. “I’m not sure I’m a natural when it comes to managing finances,” says Kristina, “but I’ve always managed to have money for the things that are important to me – and clearly knew the link between working hard and having the experiences and things I wanted.”
1. Save before you spend“Money was something that was openly discussed in our household as I was growing up, and one of the main lessons we were taught was to save before spending. My parents were quite conservative about money and were not into taking risks. They worked so hard for everything they earned. Mum used to give me money on birthdays and Christmas, which I was required to save – and along with the money I earned, I saved hard. Mum used to show me the interest every year and I was fascinated by the concept of compound interest. By the time I was 18 I had about $20,000 in the bank from forced saving and hard work. It was a valuable lesson and one I live by to this day.”
2.
Weigh up purchases by how much you need to work to afford it“I love beautiful things and experiences so my habits mean I have to work hard to afford them. I try not to think of anything as expensive – but rather how hard and smart I need to work to have it. My parents were farmers and the strong work ethic no doubt rubbed off on me. I have always worked a lot. During my school years – from the age of 14 – I always had several jobs at once, and was always driven to earn enough money so I could do and buy the things I love.”
3.
It’s possible to live on a lot less money than you think you can“In the beginning of running kikki.K, having limited financial resources was the hardest challenge. But I overcame that by being creative, working hard and having ‘do it yourself’ as my mantra. “When money is scarce, you have to be resourceful. Getting as much value as possible from the cash you have at your disposal is the important challenge. I’ve never had any option but to keep a very close eye on costs. When you sell your house to back yourself in starting a business, I can assure you that you become extremely careful about getting a return on every dollar you spend! “And if you’re not sure about how to be resourceful or how to get the most from the money you have – don’t be afraid to ask. I’ve learned so much simply by asking lots of questions, using common sense, and never being afraid to ask a silly question. When it comes to getting financial advice, it’s important to have a range of advisers and mentors and there are several people I turn to. One rule for me is to listen carefully to people who have good experience and are successful with money themselves. Another is to always understand the motivations of people giving advice. When it comes to financial advice, I believe you get what you pay for.
4.
Money is a means to an end, not an end in itself“For me money is about what it can provide for you and your lifestyle, and in itself has no value. Years ago I received some shocking news – my younger brother in Sweden had cancer. Fortunately I was able to drop everything and go home to be with him through the worst of his treatment – because I had a little money put aside. I swore then that I would earn enough money so I could have that freedom and flexibility whenever I, or my family, needed it. That became a strong part of my motivation for building savings by creating a successful business.”
5.
To be in control of your money, a budget is vital“It’s such a simple thing to do and so important. I’ve found it’s only when I have clarity over how much money is coming in and how much money is going out that I really understand where I’m at and what I need to do to achieve a financial goal. And often it’s just so simple – spend less or earn more, or both. I love budgeting and tracking how close I’m getting to a target I’ve set myself. It’s so fun and satisfying to know you’re in control.”
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