Документ Microsoft Word (2) (Автосохраненный)

Investment means a trade-off between risk and return. The higher risk the more you will want your investment to pay back in return.

There are three types of investment, the first one-is a deposit in a bank, you safe money in the bank, and later you will get it back with profit.

The second one that are bond- that will work if you are risky person, you will get your interest payments and later your bonds will be repaid.

Finally, you can buy some shares and share in the profitability of your chosen company, you can get lots of money, but that is the most risky way, because you can lose your money, in case of failure.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.

Concerning key areas to raise money, that are bank dept, private investors and venture capitalists.Bank dept works only for the business with trading story.

The second area is private investors or business angels. 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, but it is only appropriate for business people that are looking to raise more than a million pounds.

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

Market is the one of the most profitable area. 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?

Industry is about the competition, for instance competition between Renault Volkswagen, BMW, Mercedes Benz etc. 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. You need to have a great team with experience, skills and knowledge in your business field.

The success of the business- 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.