People become confused when it comes to making of knowing a successful investment or business. This is due to the idea that most investments and businesses seem to have high competition or high-risk level, and most investment schemes seem to fail or is a scam. You become so confused you ask and re-ask, how do I make or know a successful investment or business?
It might seem impossible not to have a successful investment or business but it is not so. No. Of course, it is not true.
Look around you, there are people who are making money even in the midst of hardship and recession. There are people making loads of money online. It is all about being connected to the right source and what you can easily do to earn. There are several places you can make good amount of money even if you are working–agriculture, tech, legit investment plans, services rendering and a whole lot of other avenues.
There’s secret to making this money. We will discuss this secret in the next part of this post and explore some related questions as well.
What is an investment?
An investment can be defined as assets one puts into a business or simply assets one procures to make money or bring profit for the person in the future. An investment is also the money you put into a business that’s not yours in terms of shares, angel investor, partnership and many more to reap dividends for you. For the context of this post, we would be taking investment to mean money you put into someone’s business.
What is the secret of a successful investment or business?
The secret of a successful investment or business lies in whether you are connected to the right source and how viable is that source of money-making. You should NOTE that it is not all money-making methods or means that is announced to you that you rush in immediately without making your own findings. This is where many people have got it wrong and sunk their life savings to ventures that never worked.
This is the major mistake people make. A supposedly friend or associate informs you that there is a money-making avenue that pays lots of money and you pull of your savings and rush in immediately. No background checks. No investigation. No plans. No budget and expenses and loss forecasting. You are most likely going to lose your money.
Thus, the secret of a successful investment or business is getting connected to the right source, doing background checks and knowing how realizable the business or investment is. Once the business or investment you are doing isn’t the right one, there’s high probability you would fail and lose your money.
Why do some businesses and investments fail?
Businesses and investments fail because people don’t make thorough research or knowledge gathering before moving into a business. You should endeavor to have someone who is into finance or has good knowledge of business to avoid losing your money and for you to make the right business and investment. Before taking that step to start a business or make an investment, do a complete research.
Let’s take you through the story of a young naive investor and business person, Alec. Alec is a 20-year-old young man who is naive about money-making. While he is a student and carries on part-time teaching and doing some gigs, he is still not knowledgeable about how wealth is generated and the risks involved. This makes him see a scam investment where he is promised 30% and falls for it. Thus, he loses his first little savings to a non-workable investment scheme and also to a business that wasn’t properly planned.
What is a bad investment and how do you know a bad investment?
A bad investment is the one that yields very little profit, no profit at all or where you even lose your money. You know a bad investment simply by its high profit percentage and many other factors as well like no office address, no company structure, the business isn’t properly registered in all concerned capital government regulatory bodies and they are always urging you to invest with them. Any investment offering you more than 15 – 20% annual profit of your money invested is a SCAM!
What is a good investment and how do you know a good investment? How do I make or know a successful investment or business?
A good investment is the one that pays you on the percentage as promised and constantly as well. You know a good investment by how realistic the profit promised is, 10% – 20% annual profit of money invested is good. The business you are investing in should be properly registered and be legally approved to collect investments and pay out profit.
The most important fact to note in this how do I make or know a successful investment or business is that you should endeavor to make proper research and carry out feasibility studies.
How to know a Successful Investment or Investment Scheme
There are questions you should ask yourself to fully know a good and successful investment, and these questions are:
- What products or services does this investment scheme offer to be able to generate the returns it is promising?
- How profitable are the products and services? (For instance, an piggery investment scheme offering 10% monthly, no matter how big the piggery is, is likely a fraud).
- Is the company registered under an investment securing company? I don’t mean legal registration. I mean a financial and investment securing and assurance company. Is the company registered there? If it isn’t, please stay away even if they promise a reliable monthly return.
- How long have the scheme been in existence or the company? Is it a sole-proprietorship or a board-like company? If it is owned by a single individual and hasn’t stayed for more than 5 years, there is 90% probability that is going to fail or it is a scam.
- Is the company well structured? If the company has no legal format or working according to how a company ought to work, then it is likely a fraud or bound to fail.
These questions are very important in deciding to put your money into an investment scheme. If the company or the scheme does not meet any of the criteria, do not invest!
For business, even though you are doing the business yourself, you should note that business might go wrong at times and lead to you losing your money. In this how do I make or know a successful investment or business, you need to know what’s or which is a good business that you won’t lose your money.
How to know a Successful Business
In the case here, we are taking business to be a physical or online business as well as offering of services or starting a business and handing it over to another person. To know a successful business, there are questions you should ask yourself like
- Do I have passion for the business? This is the first question. Even if it is not your first passion, at least, do you have passion for it at all? Don’t get into a business that you would feel tired of doing at some point. Businesses aren’t always good 24/7, and at these low points where the business might be doing bad, your love and passion for the business keeps you going.
- Is the business profitable? After passion, likely profits of the business is the next step. How profitable is that business? You don’t want to go into a business that you would be frustrated out of due to low or no profits. You should do a market survey and inquire from the experts in it. If it is even possible, you learn from other businesses.
- How viable is the business location? In selecting business, you do not have to state that this business is successful in this place so it would also be successful in the other place. It doesn’t work like that. When selecting a business location, make sure it meets the demands of the business and there is a ready market it is serving. If it is not, there is higher chances of failure.
- What is the risk level involved? A business that has higher risk has likelihood to fail than one that doesn’t have. Even if you have passion for such business, you have to be very careful with it and plan it; the best is to leave the business entirely and look for some other business you can try. Read How to Determine the Risk Level of a Business to know how risky your planned business is.
- Your planning and execution should be total. You should make sure you plan totally and check all the facts before venturing into any business. Do a viability check, draw a budget and do profit and loss balance sheet, and make a step-by-step analysis of the business; involve experts in that business. In the execution, make sure you are thorough with your plans and execute them all, and if it is possible, continuously keep a record.
Once you know ask these pertinent questions about investments and businesses before venturing into them then how do I make or know a successful investment or business question and confusion shouldn’t be much of a problem.
How to know and grow your Investment, Business and Sales
You want to have success in the investment you want yo make and experience continuous growth of your money. Then you should consider these:
- You should realize that wealth generation is not a fast process. It is a continuous work and steady growth.
- You should curtail your frivolous expenses whether you are working or doing business. Learn how to save. The money saved can always be reinvested into business or an investment plan.
- You shouldn’t do business or make an investment because your family and friends are successful at it. No. Make your own findings and decisions.
- Be committed to whatever you’ve set out to do. If it’s a business that may not be going as you planned, remain committed to that business. Give it 100%, it would pay off eventually.
- Treat clients, customers, colleagues and mentors with respect and due diligence. When customers are treated right they would always come back.
- Avoid SCANDAL! This is very important as scandals are likely to affect your successes and growth. Don’t cheat or engage in any activities that would bring scandal to your business.
- As your money or even business expands, plan for more growth and be flexible to change. If not, your growth would be static and customers might seek newer alternatives.
- This one’s already an open secret. You should not involve close family members and friends at the starting point of your business. It can lead to problems.
- Diversify your income source. If you work, look for investment plans to do and if you’re into business, look for other businesses or investment plans to carry out.
- DON’T GIVE UP. This one’s very important because it is certain challenges may arise, the expected and unexpected ones. You shouldn’t give up.
If how do I make or know a successful investment or business was your concern at the beginning of this post, it should not be now. There are people starting and doing successful investments and business, so it is still possible for your own business and investment to be successful. You have to know how to know the successful ones, get the tips and stay away from the bad ones and you are good.