Some people are convinced that the most important thing is to have money, but keep in mind that you must also be able to handle it. Otherwise, everything received and accumulated usually quickly flows through your fingers.
There are no such concepts as absolute reliability and undoubted truth. Even very wealthy people make many mistakes before they find the right ways to handle money.
Consider the top 10 tips from financial specialist Herbert Casson.
10. Buy what you know
Many novice businessmen invest in something that they absolutely do not understand. For the development of the business, it is necessary that the businessman knows what exactly he is doing, delve into all the important subtleties.
You should also not invest in a business that is located in another city. It will be very difficult to follow its development, in addition, there will certainly be a person who wants to take advantage of your absence and carry out any fraud.
9. Do not invest under pressure
Because of the many villains, crooks, people often lose all their savings. Typically, such attackers are so good at persuading that their victims part with their money completely voluntarily, thinking that in the end they will receive much more.
Do not give in to manipulation and psychological pressure. If you are trying to convince you of something, do not rush to immediately agree: show sanity. After listening to any seductive offer, calmly ask yourself this question: “How and what can I get in the end?”
8. Speculate on property, not on plans
The plan is just an idea: it is a child that has not yet been born. Property is something concrete that actually exists. Unfortunately, many people prefer not ghostly plans. This is because planning is associated with desire, optimism, hope.
Plans do not relate to losses, difficulties, reality. That is why it is not worth investing in them: it is very stupid to give money for something unreal. This luxury is not for novice businessmen with little experience and disabilities.
7. Buy on the decline, sell on the rise
It should not be sold when all competitors are selling: it is better to do this while raising prices. Otherwise, you probably will not have any profit.
Another rule - do not buy when you buy the majority, otherwise it will be possible to overpay very much. Try to develop an inner flair that will allow you to capture the most suitable moments.
6. The main thing in business is profit, not process
Even if the process is very exciting, diving into the business just for the sake of it is very stupid. One should always be focused on the result: only in this case will it be possible to get a good profit.
If the store owner can get more money from its sale, and not from the business itself, the procedure is obvious. You need to finish all business and organize the sale of the store, even if you part with it is very sorry.
5. When making decisions, do not look at most
Almost everyone sells and acquires, focusing on the crowd. It is because of this that a large number of losses usually occur. A person is inclined to do what others do, because it is more convenient and simpler. Few people want to be known as an eccentric, but to succeed, you must have the courage to swim against the tide.
Good luck in business loves those people who think and act outside the box. Invest your money in a way that is convenient for you, not others. Try to think for yourself, rather than listening to the opinions of members of the press, acquaintances, and neighbors.
4. The movement of capital is more important than its size
In some firms, the money is fixed, and therefore the profit of such companies is very low. It should be borne in mind that profits are most often more dependent not on the height of prices, but on the speed of sales.
Many people who do business are convinced that they need more capital, but this is usually not the case. Most often, only a significant acceleration of existing capital is required. Bought - need to sell as soon as possible, acquired now - sell it tomorrow, without delaying.
3. Don’t be afraid to make a loan
Many business people are very afraid to borrow. They work using only the available funds, are reinsured in every way. However, if you swim all the time, without going far from the coast, the risk of flying onto rocks is significantly increased.
It is necessary to take risks in business, but this should be done as carefully as possible without losing one's head. In addition, it should be borne in mind that risk should be fun.
If you can’t sleep at night, taking on credit, it’s best not to do this at all - and remain an office worker on a salary. For a businessman, such qualities as courage and confidence are important.
2. It is always better to invest than to lend
To lend is not to invest, nor to give. You will receive neither profit nor gratitude: perhaps the debtor will not even return your money. By lending to a friend, you can turn him into an enemy. A former good friend will begin to anger, annoy, and he will see in you a ruthless lender. Leave loans to money lenders and banking organizations.
If a good friend really needs money, you can not indulge his weaknesses, and invest in some common cause, try to become a partner. Of course, this is worth doing only if you are confident in the person. If everything goes well, it turns out that you helped a friend - and you got your share of the profit.
1. Development is an increase in the size and performance of a business
Do not try to impress and increase prestige, the main thing in business is focus on results, constant movement. This leads to development and profit.
First of all, you should think about your business. Do not throw money into prestigious offices, but invest them in business. Of course, you should not think about the image of the company at all, but you need to know the measure.