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Investment means using money in such way that it will result in an increase in the future. Investment means spending money to make money. Investments can mean traditional investments. They can also mean business improvements.

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9y ago
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Kelly Moses

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2y ago

What does investment mean in business?

An investment is an asset or item acquired with the goal of generating income or appreciation. Appreciation refers to an increase in the value of an asset over time. When an individual purchases a good as an investment, the intent is not to consume the good but rather to use it in the future to create wealth. check link in bio for more information

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Q: What is investment as relate to business?
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Virtually every new business requires a certain amount of financial investment. However; financial investment can be minimized depending on the nature of the business that you wish to start. Certain home based businesses only require a marginal financial investment. However; there are a few exceptions. Example: If you are a software programmer, you can probably work from your home requiring only a PC and Internet access. However; if your home-based business involves retailing or manufacturing, you will still require capital primarily for inventory. If you plan to start a business outside of a home environment, capital is required for: Building acquisition or leasing (unless you are fortunate to have someone provide you with a "work place" at no cost. Utilities expense: Telephone; electricity, etc. If you're going to sell a product, you will require funds for inventory unless you can get the inventory on consignment which is virtually impossible if you are a first time business owner. However; consignment may be possible if you can provide a co-signer. Regardless of the type of business, you will most likely require funds for advertising, unless you plan to rely on "passing-by" customers and/or "word-of-mouth". If you want to start a business without having to make a financial investment, another possible solution is to borrow the required startup capital from a person or group of people that know you very well and believe in your business plan. This, however, may have certain shortcomings such as the lender wanting to own more than 50% of the business.


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