The Main Goals of Starting A Business - Expansion of Wealth

1. The Main Goals of Starting A Business - Expansion of Wealth Once you set up a business, what is the main idea behind starting it in the first place? What is that one thing for which people choose to become entrepreneurs over being an employee in a nine to five job? The answer is earning a lot of money. Agree or not, it isn’t the betterment and upliftment of the society or it is not about providing different kind of product to the public. It is about creating wealth and then expanding it. But what is the basic difference between earning money and earning wealth? When it comes to earning money, it is just momentary, in the present and may not hold a true value in future, considering the currency appreciates every year. But wealth is a lot more than that. It is money in form of an asset. This wealth could be a house, some shares and bonds, fixed deposits, jewelry, and how much better you are doing in your business, or how much of the profit can you and your partners retain after having paid all the costs, including labor. This would give you an estimate as to how much well off your business if financially and how much more you can invest in expansion. Proper wealth management in this case becomes very important. For this, you could also hire a wealth management company. A wealth manager first studies your company’s or your financial portfolio and make a note of all the strengths. Once that is done, and one they do a SWOT analysis, they come up with a plan to help you grow your wealth. Not only do they advise you on investing in certain commodity, but also give you a detailed pros and cons about why you should choose to make this investment. Even one of the top asset management companies in India will ascertain the fact that investing to expand your wealth in just one place is not at all advisable. There should be multiple sources of receiving gains just to be keep your money safe and ensure proper returns. It is not always about the amount of money you invest, but more about what you are going to gain in return in future. Once you have invested, after a word of advice from your asset manager, it needs continuous tracking as well. But if you have hired any of the asset management firms, you need not worry about it. they take it up on themselves to keep a watch on the performance of that asset in the market. If they find or anticipate even remotely that the asset their client has invested in is tanking in terms of performance, then they can also withdraw the asset from the market, before the worse happens. Which is why, the role of being an asset manager, especially to high profile clients is a very stressful one. You do not know what may happen next and you always must be on your toes and quick with decision. ALWAYS! www.avendus.com