“ Investment Business” Cons Investor Start-up Costs: High Carrying Costs: High
“Investment Business” Model
Pros: 8
Cons: 2
Level of Effectiveness = 80% Investor Control: Yes Customer Base: Unlimited Leverage: Unlimited Multiple Income Streams: Unlimited Scalability: Unlimited Replic ability: Unlimited Growth Potential: Unlimited Profit ability: High Investor Start-up Costs: High Carrying Costs: High
Analysis
Investment Business Facts:
In 1996 the ranks of the ultra-rich - those worth more than $30 million - climbed by more than 10 per cent to 85,400.
Merrill Lynch said the ultra-rich did better because they found "select pockets" of high-growth investments in Asia, Latin America and the Mideast.
Analysis
Advantages of Investment Business Ownership:
The highest ROI is achieved by profiting from high growth investments in multiple markets
Minimal or very low overhead, compared to other business models
Analysis
Disadvantages of Investment Business Ownership:
Start-up and operating costs can be high
Volatile nature of business
Mistakes can be costly and even devastating to the Investor
Takeaways
Investment Business is not for everyone
Success is NOT guaranteed in this business
The risk of ‘losing it all’ is very high
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