TEN REASONS WHY MOST PEOPLE VENTURE INTO BUSINESS

Having gone through several books, manuals, articles, listened to speakers speak at seminars and explored the internet, including major social networks to research reasons why many people go into and what they have benefited from doing business over the years. Most of those I came across are those who started business from scratch, who have also garnered much experience from what they do.

1.    FINANCIAL FREEDOM:

 A large percentage of people I have encountered went into business to achieve financial security. Financial security means being free from all financial limitations; to make money as one wishes and not be limited to one source. Unlike a salary earner who is limited to one source, most discovered that with one or more business sources of income, they will attract more sources of finance within an extremely short notice to carry out one or more tasks in their businesses, especially for business expansion.

2.    TIME MANAGEMENT:

Time is essential in every aspect of life. Having control over your time is extremely important. Most believe that  time management helps them to organize themselves and their activities from waking up to bath in the morning to sleeping at night and carrying out their business activities within a time frame.

3.    PROVIDE SERVICE OR CREATE PRODUCT:

Essentially you can not be in business without offering a product or service that satisfies your audience for a financial consideration. It may be an existing product or service with your unique selling point or an additional input as an added proposition.

  

4.    TAKE ADVANTAGE OF OPPORTUNITY:

 Opportunities regularly present themselves in the business environment. They come in form of trade incentives to encourage the establishment of business in or outside your environment. These may have been a strong reason why many people are in business.

5.    KNOWLEDGE (LEARNING):

To gain deep mastery of a particular product, process or knowledge. In simple terms, to be a master at what they do. Every successful businessman is a master in his field because his exposure to that product and processes over the years of operating that business.

6.    ACHIEVE AND LIVE YOUR DREAMS:

Most people who went into business as an end to a means to achieve their dreams.  Achieving your dreams may include living in a dream house, owning a factory and employing a lot of people, make a lot of money, go on annual vacations to exotic places and be the most sought after individual.

7.    PROMOTE AN IDEA:

Your business is about promoting the idea that will bring in money. If an idea is not money generating and not patronized by prospective clients then, that idea is as good thrown in the bin.

8.    PASSION:

Build a business around your passion. Studies have disclosed that the most successful people owe their success to their passion for what they do. People in the services industry, such as consultants build their businesses around their passion

9.    TO BE RICH:

 Yes exactly. Being rich and undoubtedly happy. Many went into business to become rich and be able to live a comfortable lifestyle. Having a comfortable lifestyle means to be able to afford all the good things that will make ones’ life easy.

                                                                                                    

10.  TO BE HAPPY:

Happiness cannot be bought with money. But having money can make someone happy to an extent. It brings an air of contentment to the individual.

Any other reasons why you go into business? Your guess.

TEN THINGS ABOUT INVESTING IN THE STOCK MARKET

Warren Buffets' favorite rules caught up with a lot of investors lately. It’s the recession and since the last quarter of 2007 to date, there has been a series of bankruptcies, liquidations, bailouts and restructuring across various strata of the world economies.
It was a hard lesson and a harder pill to swallow and that is still giving the worlds best strategists sleepless nights. At first, there seems to be no solutions in sight to these problems. Investor’s debts and losses are rising by the day. With the news on Ben Maddof, that seals the big problem with a sledge hammer. I can still imagine so many of his ilk still waiting to capitalize on the existing problems and fleece off investors money to another Ponzi. Good or bad, we are still feeling the consequence of a badly managed economy.
However, we learnt the following lessons about the stock market.



DO NOT FOLLOW THE BAND WAGON

It is not always good advice for any investor to follow the band wagon and buy the most sought after stock in the bourse. The most important and often ignored advise is to ask why that stock price is going up and given much attention. Ask questions on such issues so as not to lose money.



BUY ONLY VALUE STOCKS

Value stocks are those stocks that have weathered the storms in the market. Irrespective of market conditions, rain or high water, investors earn regular dividend income, derivatives such as scrips and splits. The pattern of value stocks is predictable compared to non value stocks.



RESEARCH YOUR TARGET INVESTMENT DESTINATIONS

Research may include studying financial statements, market reports, economic news, business environment, talking to shareholder pressure groups, CEOs, attending the the meeting of shareholders as a guest and newspaper reports. Particular atention must be given to the CEO s annual report as it gives an insight into the operating environment of the target stock.


INVEST FOR THE LONG TERM

No matter your objectives in the stock market, always have a focus on long term investments. Long term investors have gone ahead to create stupendous wealth for themselves because they have delayed instant gratification, built empires through thick and thin and have been consistent investors over a long period of time.


LIMIT YOUR OVER RELIANCE ON YOUR FINANCIAL ADVISERS

A popular adage says that your future is in your hands. No matter how well intentioned, your financial advisers work towards getting their fees. They might cajole you to invest on impulse that might prove disastrous. So keep your eyes and ears open, reason with your head, ask them questions that give answers to the reason why they want you to invest in a particular product.


CONCENTRATE IN A FEW STOCKS AND DONT LOSE FOCUS

The most succesful businessmen and the richest men in the world made money by concentrating their wealth in a very stocks. They hardly buy every thing in sight. Instead of shying away when that stock or firm is in trouble, they take control of it and turn its fortune around for the stakeholders benefit. This is their key secret to success. Invest in only businesses you understand and not complicated ones.


DO THE MATH AND STUDY THE CHARTS

The bulk of financial advice is made up basic computations , ratios and permutations about the health of an organisation or investment destinations. There are now a lot of teach yourself books, written for the purpose of the non-financially literate investors. There are seminars organised for such purpose and they dont cost much. It will take a month of reading such books to understand these tools that can make difference in your decisions.


MANAGEMENT OF THE FIRM

A lot of investors only care or act on business news tips and dont care much about who manages their investments and who manages the firm in which they have invested. With a quality management team, investors are rest assured of moderate returns. Their main focus is to make the their stakeholders happy with their investment.


PUT YOUR EGGS IN ONE BASKET AND WATCH IT

This slogan was borrowed from a major mutual fund manager in my country, Nigeria. The stock market is a basket of opportunities-equal opportunities and all the necceasry care must be taken when making decisions concerning it. No condition is permanent and investors should make alternative plans apart from puttting all their life savings in the stock market. Dividend income generated from stocks can be channelled to new business opportunities or real estate. Therefore, watch that basket.


HAVE AN ENTRY AND EXIT STRATEGY

No matter how long is long term, every industry is subject to change at any given time. A simple innovation can close even the biggest of industry if it fails to innovate. Industry survival cycles are now less as compared to the last two decades. As a kid , i watched movies on VHS cassette on a a video cassette recorder. Now i watch them on DVD. Develop an exit strategy for your stock market investments. They keep you focused.