Investment plays an important role in business. The entrepreneur has to invest money in order to generate products and thus gain profits. Investments play a vital role in business. Without investments, there is no business.
A businessman or woman usually borrows money from the bank and invests in order to produce products. There is a gestation period when the investment is made and when profits actually pour in. The businessman is taking heavy risk as a lot of money is at stake. He or she is taking a calculated risk and hopes for the best. Merely hoping for the best does not suffice. The entrepreneur has to have a acumen to do the business and take on risks. He or she should be sure of the investments they make. They must not face losses and end up with a business venture that is a total failure.
What is business acumen?
A businessman or woman should be sharp enough to know what to invest and what not to invest. He or she must also know where to invest and how to invest. The money invested should fetch returns in terms of profits, otherwise the whole effort will go waste. After all a lot of money is being invested. Mostly, they have been borrowed and the businessman or woman has to pay it back with interest. Naturally, unless and until he or she makes profit he or she will find it difficult to pay it back.
Why business acumen is essential?
Any individual cannot think of doing business. Only a person who is able to understand the nuances of the market and is able to take risks can undertake business. One must have knack for business. He or she should be able to understand what business is all about, how to face competitors and also how to get maximum returns from the investments made.
The world of business is full of sharks. Everybody is out to get the other person. There is no place for emotions or taking it easy. A person should be full of confidence to find his or her way in this cut-throat competitive world of business.
Business is well paying if it is a successful venture, unlike job which is provides you with limited income. Risks are greater in business. In case of financial loss, one can get completed wiped out. Yet, many like to take on such risks and carry out business as they enjoy it.