In which business to invest money?

If a person has accumulated a certain amountmoney, that is, two options for their further use. The first, which is preferred by most Russian citizens, is to keep them at home, in a safe, at best in the bank account. The second option - investing money somewhere or in anything, the purpose of this event is always to extract additional profits. To do this, you need to clearly understand what kind of business you can invest money in, and which one is not worth it.

Organization of your business

Own business has several advantages. Only on you will depend on whether the money will be earned. Only you will decide what to do, who to sell, what surcharge to set when selling. All decisions on production, management, finance and marketing will also be made by you. If you are sure that you will do it better than anyone, then start writing a business plan. But best of all, do a short survey, ask friends, friends, who are already successfully engaged in business, in what business they invest money. Depending on the number of players in this market, you need to make a decision about investing money, if there are a lot of them, and the market capacity is small, then it's better to choose another business direction. In addition, by investing money in one's own business, one must thoroughly know and understand it. It is best to do business based on your hobbies. For example, you love canaries. Why not do their breeding, with the prospect of opening a bird shop? After all, you know a lot about canaries, understand their kinds, in cages and forages. Just need to put under all your thoughts a financial component. It is necessary to calculate how much costs will be at the opening, in the future work monthly, how much profit can be received as a result. With a positive balance, you can safely get down to work and invest money. The second option of opening your business is in your profession. In this case, you have the knowledge and experience, and the commitment will come if the organization is successful.

Investing in someone else's business

Investing money in another person's business is alwaysmore unpredictable than in his. To determine which of the companies to invest, you need to request the documents of the selected business. It is good to get acquainted with the constituent documents, to understand, on an equal footing with whom you will own the enterprise. These people should be known to you for their decency, solvency. If you are not offered to become a co-founder, but are asked to invest money in business, then you become an investor. Therefore, you have the right to demand a percentage of shares, a percentage of profits, must set a time-limit for the return of their money, interest from them. To assess the success of the company, in which you are going to invest money, ask to show you the annual reports for several years. Assess the growth of profits, its stability, the growth of wages, the cost of raw materials and equipment. Only in case of positive results on the balance sheets, after consulting with a good economist, answer the proposal - I want to invest money in the business.