Investing and Starting a Business

The most sought after choices of individuals wanting to earn more aside from their job is investing while those who have decided to let go of their jobs started out their businesses. There a number of considerations that should be observed before going through the desired path but taking a specific path does not mean that you could not pursue the other, some even took both paths at the same time. Knowing what you are up to would really help you in the long run. Both paths had their risks that if you have the knowledge and the technical know-how, the risks could be minimized unlike in settling for paycheck, you are foregoing the risks of earning more and securing your future and even the future of your generation.

Of the two, many prefer to go to into investing because the risk is not too high as compare to putting up a business because you may control as to how much you are willing to invest and as to what kind of securities you would prefer. It could be in the form of bonds or treasury bills where the term ranges from 3 – 5 years and would net you a fixed amount of interest at maturity or in the form of equity securities wherein you would earn through dividends while still holding the shares and also through the buying and selling of the shares of stock in the stock market.

Many people are eager to go into investing in stocks but are hindered by their fear of losing than gaining. In the stock market, you should be able to monitor and project the movement not only of the shares you are holding but also the other shares in the market. If you cannot monitor such events, much better for you to hold those equity securities in the long run because the value of the shares in the market would eventually result into a gain after a decade or so. Once the value of your securities have ballooned, you can easily sell it since equity securities are highly liquid instruments, meaning they are easily convertible to cash.

Trading and holding are the two options you can use in the stock market and both methods can generate you good amount of earnings but would not guarantee that every done deal results to a gain. Some people who do not know how the market behaves suffer losses in trading and some also have been complacent on the securities they are holding not knowing that there have been events that resulted to losses of the Corporation that resulted in the decline in the value of their shares of stock.

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Business on the other hand is riskier but is more rewarding. Establishing your own business would open up new opportunities for you as long as you know how to operate and plan your business. Putting up a business requires research, observation, planning and even innovating. Businessmen who tends to lax have turned out to fail on their businesses because they do not mind the feedback of their customers or have been complacent once they are satisfied to the earnings of the business they have put up.

Common mistakes of businesses is settling for less wherein the earning potential of the business has not yet reached the peak because of poor marketing. Putting up an identity to a business would make it credible, recognizable and distinguished as compared to common business establishments. Starting up in creating a brand is a big advantage over competitors because your product would be distinguished to the other generic products. Having a custom design or logo would give you an identity and would prompt your market as to what products and services you are offering on the table.

Other mistakes are also in financial management, some businessmen tend to sell on credit rather than sell on cash because they are thinking that they would lose sales by letting go of a sure buyer. This is true for some but may not be applicable for those enterprises whose business depends on liquidity. Selling on credit would also mean you have lost the opportunity to use the money to run your business and a few days of not having the cash to purchase the goods in running your business would be a factor in losing customers and also earnings.

Earning in business though is better, unlike in investing that could give around 5% to 20% as return on investment, a feasible business could give 60 – 100% growth or more. The growth and earnings in establishing a business does not have a limit, the only limit is your imagination. As long as you have great ideas, drive and determination to earn more, it is possible. Some new businesses have grown unexpectedly fast because of their hard work, objective decisions and motivation to succeed.

If you would look into the Forbes list, you would observe that it has been a common ground for entrepreneurs and investors. No employee have been into the list. Starting up as an employee does not mean that you should end your life as one. We will all die on our time and it is much better to die knowing you have left something for your loved ones, thus taking up one or both of these paths would not hurt your future but more likely to secure your future and your generation.

You may lose some of your hard earned money but you should feel happy that you have tried. Failing once does not mean you would not fail, you might fail more but at the end of the day, what matters more is that you did not end up a loser the rest of your life not even trying to go out of prison called employment.

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