The Finance Blog

Every investment decision involves some form of risk.

Even hiding money in a mattress or a safe deposit box entails the potential for loss of buying power through inflation or even theft.

Risk is the anticipation of loss.

What if the business succeeded? Therefore, risk should be equated with reward.

The lower the risk, the lower the reward. The higher the risk, the reward should be higher.

In the "Investment and Resource Pyramid" that I always refer to in financial planning, the top in the pyramid is the High Risk category.

It includes long options, commodities, raw land, and venture capital.

The first 2 are for the sophisticated investors that you can become later.

The purpose of this article is to discuss how to manage your risk in going into business or providing capital to promising business ventures.

Business risk management can be a combination of the ff:

1. Minimize your investment allocation, usually 5-10% of your investable funds, while the bulk of your fund allocation goes to Safety and Long-term Growth and Income categories.

When you lose the 10%, you still have the 80% tucked in safety investments. What if the business venture prospered? You can get your money back (exit from the business) and reap a high reward.

Labels: business, course, finance, finance course online, manage, online

I have always told my students in business school and Entrepreneurship seminar-participants to "earn from what they enjoy doing."

That's until I got a similar but different perspective a month ago from Rich Schefren.

Rich Schefren who?

He is the Coach of most top internet marketers that you can encounter today. The students became popular but the Master always stays in the background.

A lot of the members of this egroup have asked me about starting a business to add to their income.

But before you start your own business, download first Rich's free ebook titled The Missing Chapter

You must have an Adobe Acrobat Reader. When downloading and the ebook shows in your browser, click Save A Copy at the top left.

Then, click here for 1101 Businesses You Can Start From Home

If you have decided to launch your ebusiness, don't forget to download his Internet Business Manifesto.

To gauge the effect of the Manifesto on me, I have reviewed my strategic plan these past weeks along his line of thinking and have even applied it to my co-venture with New York Golf Shuttle and Royal Seas Travel - The Manila Golf Shuttle

Follow the link in the Missing Chapter or download here the Manifesto

But read first the Missing Chapter.

Labels: business, course, finance, finance course online, find, online