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Posts Tagged ‘Financial statement’

Using Other People’s Money “Other People’s Money”
One of the most interesting thing from an investment in property is that the systems are made in such a way that allows you to use other people’s money to finance your investment. This is one of the most important concepts that can make your property be more affluent than other investments.

On the other investment types, the large amount of investment is largely determined by how much you are willing and able to pay with cash. So to buy another investment you pay cash with the assumption balls using your own money. We take the example of investment in capital market. To buy shares then you must pay cash for all of transaction, unless you do the actual margin trading is very risky. So also invest in bonds, mutual funds, deposits and savings in the bank, gold and items event valuable art collection, all require cash payment in full.

Investing in property is not the case, you can just pay for his house down payment of 10% to 30% of the price of his house in order to have the goods then the rest can be financed from the loan to the bank. Let alone a bank, even the developer would provide relief installment payments for the payment of advances for purchase of goods.

Before starting a business plan are some questions we should consider, and most important is why we set up a business and if we have the personal skills necessary to do so.

I know I’m putting your finger in the eye, but more importantly we are not the business, all businesses operate and fail, we all know as a cafe wins while next door has to close, the business idea is the same The market also … .. Think about it.

It is important to the idea, the business, but more important is the enthusiasm and confidence of the promoters.
Any business or must meet a number of qualities:

* Self-confidence
* Organizational Capacity and Coordination
* Ability to lead and motivate.
* Ability to make decisions and take risks

I’m talking from a business school, and if you realize I have not said anything about training, why? Because the training ensures knowledge but what matters is the person. Read the rest of this entry »

1.  A start-up is usually more slowly than expected. Revenues tend to lag while expenses are always greater than previously estimated. Do your calculations with a large room to spare you any unpleasant surprises.

2.  A growing company can have a great hunger for liquidity to finance growth. WalMart was for years a growing company with negative cash flows (to finance growth). Do not let you leave without liquidity growth by surprise. No matter how well you can not go running out of cash on hand.

3.  If you need external funding to provide capital, looking for professional investors and investment funds. Far better to have outside investors professional individuals.

4.  Hire an auditor and audit your company every year. No matter how small your business, the discipline of the annual audit discipline throughout the accounting team. Read the rest of this entry »

One of the important factors when starting to invest is to have a financial plan. A while ago I got on this blog a piece of financial statements to know where he was a stand financially. Before beginning or try to reverse it is necessary to know how the financial situation of each.

After that I created another topic that talked about how to improve personal finances begin to get a little more money, we even have the 9080 rule that I created at the time.

Today will enlarge a little more about the issue of having a financial plan, a key factor when investing. At this point you should know where it stands financially, you should know how to accumulate a little capital to invest and more importantly, should know where to go.

For that is the financial plan. Read the rest of this entry »