Factors to Consider When Investing in New Businesses

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Factors to Consider When Investing in New Businesses

Tips on navigating the erratic market and discerning between ideas. 

Investment doesn’t come easy to everyone. For the most part, perhaps, the majority of people are not even sure what investing is. A concept that is unknown or unfamiliar to a person can easily be ignored.   However, learning about investments is not as hard as it seems. 

An Easy Explanation of Investments

Let’s lay down the key terms we will be discussing: investment, investors, capital, and profit. 

To paint a picture, let’s say there’s an idea to build an app for telehealth. This idea is from Ben. Ben wants to create the app and begin his own business, HealthRx. To start his new company, Ben needs capital. Capital is money that he can use to buy tools in building the business. The value of the capital determines the commencement of the company. The capital sets everything up. 

Ben does not have enough capital, so he looks for investors. Investors are people who have enough resources. They can shell out for Ben’s idea. HealthRx becomes an investment for these investors. Granted things go well as planned, HealthRx grows, so Ben and his investors profit from HealthRx. Profit is a certain amount of money earned by investors. Profit is on top of the capital invested. 

If Ben wants to keep on growing his business idea, he can look for more investors to expand his business, and the cycle goes on. 

So why don’t we invest in Ben’s idea right away? Well, the answer is simple. There are vital factors we need to consider when investing in new business. 

New Businesses: Yay or Nay?

A brand new business idea has not been tested yet. Just like any other investment, it is a risk, a gamble.  Many variables can affect the success of each business. 

It might sound scary, especially for investors-to-be. However, given the right formula, the gains from an investment decision can also be massive. So what are the factors to consider when investing in new businesses?

Market Health

The market is erratic, and trends influence everything. A new business can be just that, a trend. Once its demand is over, surplus follows, and the next thing that happens is that the company is trying to make up for the wasted resources. So when investing in a new business idea, consider a market analysis. Is this business idea still going to be viable in the next five to 10 years? 

Innovation Motivation

Investors fund innovation. However, innovation does not work without motivation. If a new idea is presented, examine the people behind this idea. How likely are they to maintain the same level of passion vital to the business’s success? Are they innovators who can learn, grow, and adapt to market changes?

Commitment to Growth

Investments involve different parties. It’s crucial to have partners that value your investment, partners you can trust, and who will take care of your money. 

Amount of Investment

Investments have risks. If the business fails, how will it affect your financial health? How much risk are you willing to take? Because investing is a gamble, it is essential to make informed decisions to stay smart.  

Kaival Investments: Growing Brands, Earning Investors

Kaival Investments is the investment arm of Kaival Brands. We aim to incubate ideas, turn them into business, and ensure that our investors maximize their investment potential. We foster growth and work hard on getting profit, without compromising values and integrity.

Our investors are important to us, and we make sure that they are aligned with our philosophy. All the brands we handle are determined from a forward-thinking mindset. And our investors can expect nothing less but market competitiveness and high returns. 

Kaival Investments has four primary brands at the moment: 

Bidi™ Vapor – the manufacturer of the game-changing vape pen, the Bidi™ Stick 

BidiTM Cares – the recycling platform for BidiTM Vapor

Kaival Labs – a powerhouse for developing smoking cessation products using R-S-Nicotine with a cessation patent.

Kaival Brands – a leading business marketing company that supports a wide range of brands

Decide to invest today. Learn more about the brands under Kaival Investments at www.kaivalinvestments.com.

Kaival Investments is the platform for the investors of Kaival Brands.

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