9 PRINCIPLES OF INVESTING YOU SHOULD APPLY WHEN VENTURING INTO A NEW BUSINESS

money and saving

Investments scare a lot of people away, and many who venture into investments go about it the wrong way, losing their money in the process.

These are some investment principles you should know when venturing into a new business.

1. INVEST IN A BUSINESS YOU KNOW

One reason many people lose their money in investments is that they venture into a business out of their line. When you venture into a business you know nothing about, you might make mistakes — costly mistakes which might lead to the end of that business.

And if you don’t know much about the business, be sure to take the next tip very important.

2. DO YOUR HOMEWORK

Even when you venture into a business you know, you ought to do your research and carry out some analysis on things that could affect or improve your business. However, so many people lose their money because they enter a business when they have heard someone is making money from it; they have little or no idea about the business and they don’t carry out a comprehensive research about the business they are venturing into.

This is a mistake you shouldn’t make as a smart business person.

3. BE PATIENT

I haven’t seen a successful businessman who didn’t apply patience. Patience is highly important if you are aiming to go far in that business. Many people get carried away with the lust to make quick money that they forget this vital investment principle.

4. SAVINGS

Savings is always important. A lot of business people don’t save and many end up paying the price. Whether it’s a new business or an old business, savings are important.

5. DON’T BE IN A HURRY TO SPEND YOUR PROFITS

Never be in a hurry to spend your profit in that new business. Rather save or reinvest. Savings would guarantee backup when things go wrong — and this usually happens. Also, reinvesting your profits back into the business would help strengthen the business and make it grow quickly.

6. GET THE BEST ADVICE YOU CAN GET

Before you venture into that business, be ready to learn; ask for advice from people who are successful in it. Seek knowledge and don’t just end there, think the best for yourself — that is, learn to improve the advice you get and do better with it.

7. BE INNOVATIVE

Innovative businesses usually stand out; don’t just practice the norms, don’t keep doing what everybody is doing — be innovative and your business would stand out from the rest.

8. PROVIDE QUALITY

In any given line of business, quality is something that guarantees results. Provide quality whether you are rendering a service or whatever form of business you venture into. Quality and diligence should never be compromised.

9. RISK

Every business has with it an element of risk; as far as money and investments are concerned, there is usually a risk factor. Past performance isn’t always an indicator of future results and future returns aren’t always guaranteed. However, it’s important to know the risk factor involved in that business.

 

Jake 

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