In this present time when everything seems to be difficult due to the recent economic crunch, it has become important for every enlightened individual to become savvy with money management. The best away anyone can boast of managing his finance appropriately is to put that finance to replicate itself in a sustainable way. Putting money to work, to gather extra cash is what most people call .

Business can be in form of service delivery, consulting, production or manufacture, logistics and brokerage. Most individuals who have an employment think about how they can make more money to augment the monthly income from their employment. Hence, you hear so many employed professionals ask about feasible investments they can go into. Especially when you are already having retirement in view, you become more conscious of how to sustainably improve the income you already have.

A business is any activity that solves people’s problem, provides a value that people are willing and are able to pay for and the process must be such that can be sustainably replicated in more efficient ways. That is to say, business is usually not a one-time affair. The business promoter must be able to repeat the same process and get the same result, and as the process improves, the result is expected to improve. If the process is cycled for a couple of time, a business should be able to sustain itself with external input. Additional external input should most possibly improve the business performance.

There are three main components of a business; a business idea, people and finance. You will need the three to start and grow any business. However, it does not mean you must have everything in place to start a business. As a matter of fact, the best businesses that survive beyond the idea stage do not usually have all the three components in place at the beginning. One or two may be lacking but you must never lack an idea of how to obtain the missing component/s.

By implication, if you have a business idea and you do not have the human resources or the finance to execute it, you must be sure on how to get both. If you have a team of capable hands yet lack a business idea, or finance brainstorming through the ideation process will be the way to go. Meanwhile, some people have the financial capacity but do not have a business idea or a team. This is the most delicate part. You must carefully select a team that has integrity and tenacity if you do not want to fall victim of fraudsters or incapable hands that will waste your resources. Taking time to screen ideas to invest in also needs skills and expertise. If you are not savvy with appraising business prospects or performances, it is advisable you approach professionals who can help you in such decision making.

As you can see, having any of the three components or all is not what guarantees success in business but the ability to harness and manage each of the resources productively and optimally. In addition, strong determination as well as fiscal discipline and self-discipline are also very key to the success of any business venture.

Subsequently, we will discuss ideas that you can invest in if you have the financial or human resources.

To many, real estate is a no go area for investment. Due to the business ecosystem of our country, so many see real estate as an easy way of getting into trouble. Some other set of people see it as a very expensive investment that requires huge capital to start off. Although, these fears and beliefs are real, they are however far from the truth. They are just unfounded fears. As you will however agree that it takes a courageous individual to invest in any business, so it is not surprising to know that it is only the confident risk takers that involve in real estate. Definitely, the most dreaded activities in life are the ones that pay most.

Why would you want to invest in real estate?

Real estate always appreciate unlike some other investments or properties that depreciate with time. Since money loses value over time, putting your money into real estate is a way to appreciate the value of your money. Investing in real estate can also be less stressful unlike the commodity market. Continuous population growth is another reason to invest in real estate. As the population grows and development increases, the value of your property keeps going up. Real estate investment is one of the few investment opportunities with flexible tax policies. Your investment has the potentials to take care of itself.

Real estate is a very lucrative investment all over the world which may be conducted with no cash at all on the minimum and on the maximum may demand several billions of dollars. What makes the difference is what part of the value chain of Real estate development you want to engage in. Real estate investing refers to the purchase, ownership, lease, or sale of land and any structures on it for the purpose of earning money. Therefore, how much you invest in real estate will be determined by what type of real estate investment you are interested in. In real estate, how much you put in does not always translate to how much you get. It is such an industry that respond to so many other factors outside the size of invested money. Such factors will include location, the type of investment and the investor’s skills, experience etc. You may invest the same amount with another person but have huge difference in returns up to 300 % margin.

It is therefore important to know the basics before leaping into real estate. Real estate is generally divided into three main categories namely residential real estate, commercial real estate and industrial real estate.

  • Residential real estate: consists of single family homes, multi-family homes, townhouses, and condominiums that people use as living space and not a working space.
  • Commercial real estate: this refers to a property that is used for the purpose of business. Commercial real estate is classified as office (business offices), retail (restaurants), land (farmland), and multi-family (large apartment buildings).
  • Industrial real estate: refers to properties that serve industrial business purposes. Examples include factories, warehouses, and power plants.

Similarly, money can be earned on your properties in three ways namely: interest from loans that you provide to a real estate developer, appreciation of owned property and rent on property that you lease out.