Tuesday, January 13, 2015

Get investment returns from the retail businesses



Before going to any sort of investment firstly we have to know that what is an investment, How to invest money and where to invest. An investment is any asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic sense, an investment is the purchase of goods that are not consumed today but are used in the future to create wealth. 

Investing isn't just for the wealthy. Almost anyone can devote at least a little money to investments, keep close tabs on it, and wind up with more money than he or she started with. “Money Made Selling Your Time” This is the source of income that the middle and lower classes consider the most important. It is the money you receive for selling your time to an employer. It is often represented as salary or wages. You’ll often hear well-intentioned parents telling their children to find a “good job”, preferably one “with benefits”. If you want to make money fast, invest money in universal trustees. Retail is the sale of goods and services from individuals or businesses to the end-user. Retailers are a part of an integrated system called the supply chain. A retailer purchases goods or products in large quantities from manufacturers directly or through a wholesale, and then sells smaller quantities to the consumer for a profit. Retailing can be done in either fixed locations like stores or markets, door-to-door or by delivery. In the 2000s, an increasing amount of retailing is done using online websites, electronic payment, and then delivered via a courier or via other services. The retail industry provides an exciting way of life for the more than 24 million people who earn their livelihood in this sector of the U.S. economy. Retailers provide the goods and services that you and I need--from food, auto parts, apparel, home furnishings, appliances and electronics to advice, home improvement and skilled labor. Most retailing involves buying merchandise or a service from a manufacturer, wholesaler, agent, importer or other retailer and selling it to consumers for their personal use. The price charged for the goods or services covers the retailer's expenses and includes a profit. Each year, this vital sector of our economy accounts for about 38 percent of our gross national product--more than $3 trillion. In retail, successfully managing return on good investments (ROI) and other financial indicators is the key to a healthy business. 
Expansion is an important part of retail growth but only when generating positive cash flow from those capital expenditures. Without a positive return on investments, retailers are wasting good money after bad. It's critical for retail managers to quantify as much as possible so that they may better understand the profitability and financial health of their business.

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