Business Editorial

Archive for the ‘Investments’ Category

When I talk to adults who want to earn more money, I always recommend the same. I suggest you take into account the perspective of his life in the long term. Instead of just working for money and security, which I admit are important, I recommend finding a second job to teach them other skills. Often, I recommend associated with a network marketing company, also called multilevel marketing to develop sales skills. Some of these companies have excellent training and training systems that help people overcome their fear of failure and rejection, which is the main reason why people are not successful. Education is more valuable than money in the long term.
When I give this suggestion, I often hear “Oh, it’s too complicated ” or “I just want to do what interests me.”

With the statement “Oh, it’s too complicated”, I ask “So continue to work all your life giving 50 percent of your income to the government? ” And to the other, ” I just want to burn that interested,” I say ” I do not want to go to the gym, but I will because I want to feel better and live longer.”

Unfortunately, there is some truth to the old statement ” You can not teach new tricks to an old dog.” Unless the person is accustomed to change, is difficult to change.

But for those of you who might be ready to jump the other way when it comes to work to learn something new, I offer these words of encouragement: Life is much like going to the gym. The most painful part is deciding to start. Once past that point, it becomes easy. There have been many days when I felt terrified to go, but once I’m moving there, it is pleasurable. When the exercise ends, I’m always glad that I have to go. Read the rest of this entry »

At the present time in which we live that a customer fails to pay us a bill probably ( together with the tax burden ) is one of the greatest risks to us. Obviously the risk will be growing as the amount of the invoice, or the accumulation of unpaid bills that one or more clients we accumulate.

We could go to talk about how to protect defaults by such measures as “credit and surety ” and others, also could go to complain about the injustice we have to pay to the tax imposed by the respective invoices not yet paid us, but that for the moment not solve the problems of most businesses, especially small practitioners.

So you’d better approach it from the perspective of ourselves we can do to avoid to the extent of possible default, and avoid defaults that becomes essential and indispensable if we want to simply survive. And approaching it from that perspective first to say that to avoid defaults hundred percent is virtually impossible, because unless we collect everything in advance we can leave money owed, but at least try to minimize the risk and / or impact.

Not all products or services can act the same way to avoid default, nor is it to avoid defaults that establish risk policies or payments are scared to customers, or that force us to analyze the solvency of each client. But for example in the service sector or yes to ask a percentage in advance and the rest at the end of the service can be a good measure to prevent defaults, or at least to avoid all of the default.

The previous measure at least guarantees that if the customer does not pay us at least the end we will have avoided most of the losses, as we have not won but at least we have not lost (or we have not lost much). To say that not all customers will agree to these conditions to us to be flexible or not, I am in favor of not being closed so just listen and lose good opportunities, but be very cautious in yielding to different approaches. It is better to lose a customer that we are building up a bag of bad customers that we stop paying us. Also, do not hesitate, usually the client in good faith and has no problems shall conform to the percentage pay us in advance.

The first point we will define what is an investment, which is money paid to a profit in the near future.

Analyze an investment from a process in which they can learn about the convenience of performing or not.

The investment analysis should reveal whether or not its realization, it also allows two or more known investment projects which is the most advisable to follow from a financial standpoint.

The criteria for making a selection of investments in the following:

* That the performance value exceeds the current value of the investment cost. This means that the NPV (net present value ) is positive.
* That the company can weather the time financial investment is made and the time you get the benefits of investment.

In relation to models of investment analysis, these are mathematical models that pretend to make a simulation of the process so you can evaluate the results.

Are reminded that investment involves high risk for the company because once the decision to carry it out, it is virtually impossible to reverse.

Therefore investments that have a representative volume should be subject to a strict study to determine its profitability and viability.

For the analysis of investments in which there are different criteria prevail investment that has the higher NPV if the company can bear the financial burden.

Another point to consider is the risk that the company may file, which is manifested by the volatility of the NPV or the likelihood that they can not meet the payments required by the project, which can be analyzed through a sensitivity analysis.

As previously mentioned models of investment analysis are of the mathematician who would try to simulate as investment and what the possible outcomes.

Anyway, the result will not be accurate, but serve as important guidance to consider when making decisions.