While investing in a business, the 3 main considerations are:
1. Kind of person: However well drafted the agreement may be, whether you get good returns depends to a large extent upon the kind of person / persons who are running the business. If the person is honest, the investor is likely to get his or her money back.
2. Nature of business: Some businesses have a genuine market demand and are likely to succeed. In others, the business plan is based on hype or inaccurate media reports and the chances of failure are much higher.
3. How the business operates: In many cases, the profits also depend on how the business is run. If the business owner is not firm with his customers and has too many bad debts, the chances of getting significant returns are lower.
Business investment
January 11th, 2009Investments
January 10th, 2009Though financial experts may claim to be best placed to advise you regarding your personal investments, few understand your real needs and limitations. Many times , the investments experts have their own personal agenda while recommending a particular product or service and their real interests may differ from those of their clients.
The best way to find the most suitable investment strategy for yourself is through trial and error. If a particular method is recommended or in the news, invest a small amount and see the results. It is also important to understand whether you are looking for short or long term gains.
If you are looking for an investment method which will give good returns over a short period of a few months, you can try investing in shares. However, there are many players in the share market, and prices are influenced by macro economic factors which are beyond your control. A better way would be investing in a business of a person known to you.
Hello world!
December 28th, 2008Welcome to WordPress. This is your first post. Edit or delete it, then start blogging!