An investment is an asset or item that is purchased with the hope that it will generate income or appreciate in value at some point in the future.
Here are the 6 Essentials of investment.
1. Any type of investment requires vision and realism to ensure that the proposed venture is both viable and feasible, ie. It will result in financial or economic benefits that outweigh costs, and is technically achievable.
2. Selection of the right project is paramount. The right project should be one that is viable, feasible and something in which the investor has interest and some knowledge about.
3. Once a decision is made to start a business has been taken, the implementation should be carried out without undue delay and according to a well laid down plan.
4. The identification and engagement of suitably qualified and competent personnel right from the initial stage is important.
5. All funds should be firmed up at the project planning stage and especially sufficient cash provided. Where funds have been borrowed, the lender is your co-investor and must be kept well informed of the progress and problems.
6. Investments are especially long term. One must be willing to delay immediate desire for consumption as this could jeopardize the investment. A demarcation should also be kept between business and personal transactions.
Reference.
Gethaiga Kibuka – GOING into BUSINESS FOR your SELF!
Tukia 