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Archive for the ‘Investment Models’ Category

The risk is subjective, each person perceives it differently depending on their circumstances
Please note that in the analysis of any investment you should consider your principles and your values. For example, if someone proposes a “good” business, which is to open a brothel, or selling drugs, surely declines the offer, however profitable than the business, because both go against my principles and values. Without taking into account that they are illegal (yet, in many places).

Please note that an investment gain in the input, not output . An example of this is to buy a product to sell for $ 10 to $ 20. You win when you actually sell it for $ 20, and not before. If you do not know how you come out of an investment before you have entered is not an investment but a gamble. For example, if you buy a cheap product, say $ 10, and want to sell it for $ 20, your exit is clear. But there are times when the output is not so easy to determine, for example if you associate with another person to start a business. In theory, you have to do your plan in advance, and know that at some point will sell your share to your partner, or someone else, or will buy your share, or inherit your share to your children. That’s what you need to determine before making the investment.

Several models of investment:

Price differential: It consists of buying low and selling high . May be, for example, buy the car in your neighbor for $ 10 thousand, to sell at $ 12 000

Read the rest of this entry »

* Money or Funding:

Long SMEs in Argentina could not leave the bag until you have a reasonable size or better, stop being SMEs. Today this is possible and is a good option for both parties. In the case of the bag is very simple. Based on our actions, we can offer them in the bag for other people to buy.

It can also occur financing by the entrepreneur. The repurchase difference in this case the entrepreneur buys our part using their own money or funds to buy our hand, change in the financing, once the business is running, the entrepreneur can borrow money and thus how to buy us.

Then you are the exit options that you should have designed and arranged so as not to stay in business. You must come and go constantly and businesses to take advantage of good times and exit before the bad times happen. Read the rest of this entry »

In the previous topic commented on the first model of investment we can use. This was the “price” and basically trying to follow the technique of “buy low, sell high” and are getting good prices by chance, or simply search through our contact network.

But today’s model will see the “seed money” and how it works. Obviously this model of investment is very different from before, but if you know how to use his techniques, you will generate better returns than using the previous model.

How does this model?

This model is used when you want help with an amount of capital, an entrepreneur in his project to launch how to improve the work he is doing. In this case we have a difficulty that is the “risk” because if the project is not launching, do not know if it actually works or not.

What about strategies for entry and exit?

In this case the problem is not the front, and we can negotiate or create a way to get into the business to be truly effective in achieving our objectives. The problem that actually generates is how we make our exit strategy. As learned and studied, there are 3 ways out of this type of investment: Read the rest of this entry »