part eight - pros and cons of investing model

Pros and Cons of Pros and Cons of Business Models Business Models

By Val A. Slastnikov,By Val A. Slastnikov,

Business Models ExpertBusiness Models Expert© 2010 Digitizer Group. All rights reserved© 2010 Digitizer Group. All rights reserved

PART EIGHTPART EIGHT(Pros and Cons (Pros and Cons

Of Investing Of Investing Model)Model)

What is Investing?What is Investing?

InvestingInvesting is any type of Investment is any type of Investment Business where you do not own the Business where you do not own the assets you invest in.assets you invest in.

Is Investing for you?Is Investing for you?

Who belongs in this Who belongs in this category?category?

Stock Traders, Forex Traders, Real Stock Traders, Forex Traders, Real Estate Investors, etc.Estate Investors, etc.

Do you have what it takes to be Do you have what it takes to be an Investor?an Investor?

““Investment Business” Investment Business” Pros Pros

Investor

Control:

Yes

Customer Base:

Unlimited

Leverage:

Unlimited

Multiple Income Streams:

Unlimited

Scalability:

Unlimited

Replic-ability:

Unlimited

GrowthPotential:

Unlimited

Profit-ability:

High

““Investment Business” Investment Business” ConsCons

Investor

Start-up Costs:

High

CarryingCosts:

High

““Investment Business” Investment Business” ModelModel

Pros: Pros: 88 Cons:Cons: 2 2

Level of Effectiveness = 80%Level of Effectiveness = 80%

Investor

Control:Yes

Customer Base:

Unlimited

Leverage:Unlimited

Multiple Income Streams:Unlimited

Scalability:Unlimited

Replicability:

Unlimited

GrowthPotential:Unlimited

Profitability:High

Investor

Start-up Costs:

High

CarryingCosts:

High

Analysis Analysis

Investment Business Facts:Investment Business Facts:

In 1996 the ranks of the ultra-rich - In 1996 the ranks of the ultra-rich - those worth more than $30 million - those worth more than $30 million - climbed by more than 10 per cent to climbed by more than 10 per cent to 85,400.85,400.

Merrill Lynch said the ultra-rich did Merrill Lynch said the ultra-rich did better because they found "select better because they found "select pockets" of high-growth investments in pockets" of high-growth investments in Asia, Latin America and the Mideast.Asia, Latin America and the Mideast.

AnalysisAnalysis

Advantages of Investment Business Advantages of Investment Business Ownership:Ownership:

The highest ROI is achieved by The highest ROI is achieved by profiting from high growth profiting from high growth investments in multiple marketsinvestments in multiple markets

Minimal or very low overhead, Minimal or very low overhead, compared to other business modelscompared to other business models

AnalysisAnalysis

Disadvantages of Investment Disadvantages of Investment Business Ownership:Business Ownership:

Start-up and operating costs can be Start-up and operating costs can be highhigh

Volatile nature of businessVolatile nature of business Mistakes can be costly and even Mistakes can be costly and even

devastating to the Investordevastating to the Investor

TakeawaysTakeaways

Investment Business is not for everyoneInvestment Business is not for everyone Success is NOT guaranteed in this Success is NOT guaranteed in this

businessbusiness The risk of ‘losing it all’ is very highThe risk of ‘losing it all’ is very high

Where do you go from Where do you go from here?here?

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PART NINE