топик money

Types of investments. The ways of raising business capital. Key aspects of financial success-топик

FACTOR AFFECTING INVESTMENT DECISIONS (RISK, RETURN, LIQUIDITY) TYPES OF INVESTMENT.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

There are many types of investment, each with its own level of risk, return and liquidity. Investment means a trade-off between risk and return. The higher risk the more you will want your investment to pay back in return.

Money is always looking for places where it will be most profitable and earn the greatest return on investment.

As an individual you can put your money on deposit in a bank. Your money is lent out to people and businesses who need it and the bank will make its money on the difference what it pays out on deposit and what it gets from its loans.

If you are more risky you could buy some bonds and you will get your interest payments and later your bonds will be repaid.

Also you can buy some shares and share in the profitability of your chosen company. In good times the dividends will be more than what you would like to get from bonds and shares but if the company goes bankrupt you may lose your money.

Venture capitalists invest in different start-ups, knowing that most will fail and one or two will hit the jackpot paying back all the money they lost.

Also there are a lot of markets to invest in for example currency markets, stock markets, commodity markets and property markets.

In conclusion I’d like to say that it’s beneficial to invest in different areas to spread your risk. It’s important to research the area you want to invest in to divine the risk before you hand over your money.

WAYS OF RAISING FINANCE FOR DIFFERENT TYPES OF BUSINESSES.

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

There are three key areas to raise money: bank dept, private investors and venture capitalists.

The first area is bank debt. If you are a start-up business, bank dept is not an area which you’re going to find very successful, because banks won’t to lend to high-risk businesses. If you don’t have any trading story, they are unlikely to provide a personal guarantee to the bank, perhaps putting your house at risk.

The second area is private investors or business angels. They are typically wealthy individuals that over their life have saved up a considerable amount of money which they want to invest in high-risk, high-return businesses. These are individuals that have decided not to invest in the stock market, which is large, lower- risk investments but to take up an opportunity to make ten times their money by investing in start-up businesses.

And the third area is venture capital. It is only appropriate for business people that are looking to raise more than a million pounds. It is less than a million pounds then you need to go down the private investor route.

In conclusion I’d like to say that if you are an established business looking to raise money then the bank dept route is probably the most appropriate. If it is under a million pounds it’s private investors, and if it’s over a million pounds it’s venture capital.

KEY INDICATORS OF А COMPANY'S FINANCIAL SUCCESS. WAYS TO INCREASE REVENUE

Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context.

There are three key indicators of a company's financial success: market, industry and management team.

Now the market is an important area because products, which are selling into a large and fast-growing market, bring very a big profit. And the market, it's important to note, is all about the buyers - so who is going to buy my product, at what price are they going to buy it?

The second area is industry and the industry is all about the sellers. It's all about the competition. So if you're Renault you're competing against Volkswagen, BMW, and er Mercedes Benz, for example. So, starting a business you need to make sure that you have a lot of competitive advantage.

And the final area is the management team. And management teams are very difficult to assess. You should look at the experience of the management team, that is how well do they understand the market and the industry that they are going into. You should look at the ability of the management team to execute on their business plan.

The growth and development of the company associated with the development and implementation of the strategy and tactics of the increase enterprise profitability through effective management of the formation and distribution of its income. It is a complex process based on a deep knowledge of market conditions, business opportunities and factors that determine the competitiveness of enterprises, the ability to foresee the real ways of obtaining high performance.

To sum up, I would like to say, that if you look at all the areas that your product will bring a big revenue. In my opinion, an important industry is management team, because many workers can’t work as a team, they work with the extraction of benefits for themselves.