People are always thinking of various ways to improve their financial capacity. For this reason, people have devised different means of making money with the resources available to them. Investment is one of those ways you can improve your financial capacity.
WHAT IS INVESTMENT?
Investment is the creative utilization of
available resources in order to get more revenue or return. Investment can also be the non-utilization of a product of value with the hope that its worth increases with time to bring in more revenue when sold.
There are various ways people make investments. One of such way is through the buying of shares in a company. Buying of shares in a company entitles one a particular percentage of the company’s worth. The rate of return for shares is dependent on the company’s profit. As a shareholder, you become part owner of the company. Therefore, you enjoy the profits and also suffer the losses of the company.
Another way to invest is through buying real estate properties. You can buy a building for the purpose of renting it out to get more returns over time or you can simply use it for your business which would bring back returns over time via profits.
Lending out money is also a form of investment. The interest on such loans is the return.
The money you spend on trainings for a particular course; say catering, digital marketing or even for your education in general are all types of investments. We improve on our knowledge because we believe that it would increase our worth and chances of making more money in the future.
REASONS WHY PEOPLE INVEST
For financial security.
To increase their capacity to help friends and family.
To be able to carry out a business project.
For growth and expansion of a business.
For retirement savings.
To keep a property in use and avoid wastage or losses.
INVESTMENT IN BUSINESS MANAGEMENT
In the business world, investment is a continuous practice. To start with, the capital you used to start up your business, the money spent on the continuous running of the business are all types of investments which you hope to get returns on from the profit the business makes.
Entrepreneurs can be said to be the most investors. In business management, you get to invest a lot of things. You invest time, energy, money, assets, and the list goes on. These investments are based on what we hope to get in return. Of course there are risks because the future is not always certain. Certain investments are more risky than others.
As an investor, it is good you weigh your options. I would advise that you make only those investment decisions that would not have so much impact on you or your business in case of losses. Weigh the odds and be honest with yourself. Do not let the thought of all the returns you are likely to gain put you from ignoring the risks and most importantly, consult a financial adviser for all your financial decisions.
Let me know what you think in the comment section.