Integrating business perspective - Essay Example

Integrating Business Perspective Integrating Business Perspective Small startup businesses are usually those which require help financially and morally. However, financial support is far more important that the moral support since if the team members succeed in getting financial investment then the morale boosts automatically. There are certain factors that need to be crucially evaluated while investing in business especially those that are on small scale and will require long time before any of the investment will be returned.

Such businesses also are more prone to risk and hence they have the possibility of failing if not managed well. Hence, the investor looks into certain factors with a keen eye before investing into something. First and foremost, it is important to know complete detail about the business that is about to start up, its complete assessment and the analysis of the risk involved in the business. Analysis of risk factor is very important thing to know when considering to invest in a small startup business since this risk is what actually defines how much money you will earn or how much money you will lose in the future.

But in certain cases the loss is worthwhile since the profit gained after a certain time period is far from the losses. For this purpose it is important to look into the idea that the party is selling and whether it has potential to grow or not and whether it will go down the drain. Generally speaking those who want to invest in such type of business should have an open mind and should know that investing in such type of business always involves the factor of risk and the elimination of this factor is hardly ever possible.

To be sure of the idea that the students are selling, we should see the product sample being shown to us and various other factors which are all linked to ache other. Another important factor to look upon when investing in such small scale business is time. Time is one of the most important factors of such type of businesses because such startups may require more than average time to get a return i.e., there should be no expectations of getting any money out of this business for three to five years.

In such a case, the investor can put in his money in the form of loan which can be returned to the investor within a specific time period but there will be no profit earned in such case. The team involved in the business should also be evaluated since they are the people who are going to run the business and these people will be responsible on giving you your money back in the form of profit or in case of losses. If the team is incapable of running a business then it is sure that the business is not going to succeed.

Lastly, it is important to plan a strategy which will help the investor to back out in case he realizes that he is going to lose more money in this money than he actually planned on. In some cases, this is difficult to accomplish because till the time the time comes when the business begins to falter, the investor is too much engrossed in that business. However, the exit strategy completely depends on the investor himself and how he plans on exiting the business when all else fails (Guillot, 2013).

While these factors should always be considered first hand before investing in to the business, there are many other factors as well which can never be ignored and there are certain things that cannot be seen by sight but are felt by the gut and such feeling should never be ignored.ReferencesGuillot,. (2013). 5 Things to Know Before Investing in Business Startups. Fox Business. Retrieved 5 June 2015, from http://www.foxbusiness.com/personal-finance/2013/10/11/5-things-to-know-before-investing-in-business-startups/