Post by ruhaimabinteria222 on Mar 7, 2024 1:01:55 GMT -5
Setting up your own business is the dream of many Brazilians, but is investing in the company the best alternative to achieving financial independence? What would be the point, for example, of having an establishment with a profitability below savings, if the account has a lower risk, do you agree? See, in today's post, what to consider before investing in the company. Where to invest your hard-earned money? Many people save for a long time to save and, with this financial reserve, make an investment that guarantees a satisfactory income for several years. Some choose to use the money saved to set up their own business, after all, by doing so they would stop being employees and become bosses. However, what many people don't evaluate is whether the effort to invest in the company is actually worth it in financial terms. When we talk about investments , whether fixed income or variable income, as in the case of a business, we need to think about the so-called opportunity cost. For example, if you have R$10,000 in conventional savings, which yields 7.5% per year, at the end of twelve months you would have a gain of R$750.
Therefore, to take advantage of another opportunity, it would have to overcome this cost. Note that you wouldn't need to do anything for the money to yield this percentage, you would just have to leave the amount deposited in the bank. Therefore, if you were to invest the same R$10,000 in the company, you would have to expect a greater return than that offered by savings, since the risk of putting the money into your own business is greater. After all, you won't be sure that you will receive the resource back. Invest in the company or in other applications? Entrepreneurs who have been in the market for some time do British Student Phone Number List always see their own business as a long-term investment, for example, for retirement. It is common for business owners to worry about the profitability of the business to withdraw a fixed amount or a pro-labore per month — which favors a good living condition — although they forget to measure the company's profitability. Know that, if you don't monitor your business accounts, you may even get a satisfactory “salary” per month, but you could still earn more if the amount was invested in a financial application that had a higher profitability than that achieved.
When deciding whether it is worth investing in the company or in a financial investment, you must evaluate the risk and potential gain ratio. For example, there are fixed income investments that offer interest of 10% to 15% per year, such as the Treasury Direct and the Bank Deposit Certificate (CDB), with low risk and relatively high liquidity (ease of transforming the asset into money that can be used). Investments in shares can yield the same percentages, in a matter of days or weeks, although they have a high risk, including loss of the original capital. Based on the investment options that the market offers, in terms of risk and return, you should assess whether it is worth investing in the company. How to calculate profitability and profitability? To be able to make accurate comparisons, you must find out the profitability and profitability of the business. Net profit is the amount left over after deducting production costs. As you can see, it is shown as a percentage of revenue. Profitability is an indicator of the company's operational efficiency, linked mainly to sales. You must keep in mind that a profitable business may not necessarily be profitable. Profitability has to do with the expected financial return on the capital initially invested.
Therefore, to take advantage of another opportunity, it would have to overcome this cost. Note that you wouldn't need to do anything for the money to yield this percentage, you would just have to leave the amount deposited in the bank. Therefore, if you were to invest the same R$10,000 in the company, you would have to expect a greater return than that offered by savings, since the risk of putting the money into your own business is greater. After all, you won't be sure that you will receive the resource back. Invest in the company or in other applications? Entrepreneurs who have been in the market for some time do British Student Phone Number List always see their own business as a long-term investment, for example, for retirement. It is common for business owners to worry about the profitability of the business to withdraw a fixed amount or a pro-labore per month — which favors a good living condition — although they forget to measure the company's profitability. Know that, if you don't monitor your business accounts, you may even get a satisfactory “salary” per month, but you could still earn more if the amount was invested in a financial application that had a higher profitability than that achieved.
When deciding whether it is worth investing in the company or in a financial investment, you must evaluate the risk and potential gain ratio. For example, there are fixed income investments that offer interest of 10% to 15% per year, such as the Treasury Direct and the Bank Deposit Certificate (CDB), with low risk and relatively high liquidity (ease of transforming the asset into money that can be used). Investments in shares can yield the same percentages, in a matter of days or weeks, although they have a high risk, including loss of the original capital. Based on the investment options that the market offers, in terms of risk and return, you should assess whether it is worth investing in the company. How to calculate profitability and profitability? To be able to make accurate comparisons, you must find out the profitability and profitability of the business. Net profit is the amount left over after deducting production costs. As you can see, it is shown as a percentage of revenue. Profitability is an indicator of the company's operational efficiency, linked mainly to sales. You must keep in mind that a profitable business may not necessarily be profitable. Profitability has to do with the expected financial return on the capital initially invested.