How to invest in someone else's business?
Posted: Tue Jan 07, 2025 6:14 am
If you want to invest your money in someone else's business, there are different ways to finance a venture, either through a direct agreement with the owner, who may be a friend, acquaintance, family member, etc., or through different financing platforms for entrepreneurs.
In any case, you should review the following business performance indicators, as this information will help you calculate the potential return, risk and term of your investment.
Market indicators
These indicators give you an idea of the size of the business's potential market, whether it is local or national, and the opportunity it has to cover it. This allows you to know the chile phone data competitors and the position of the business, as well as its advantages and differentiators.
Sales indicators
When checking sales indicators, you should analyze how the company's growth and turnover have been over time and whether this is sustainable. Also, pay attention to its financial health, whether it has debts, how large they are and how long it will take to pay them off.
Customer Indicators
Customer metrics will show you how much it costs to acquire a new customer, as well as the average sales receipt and, above all, the Lifetime Value (LTV), a key metric that indicates how many purchases each buyer makes and for how long. For a business to be profitable, the acquisition cost must be lower than the LTV.
Conclusion
As we have seen, there are different ways to invest in a business , whether it is your own or someone else's. In any case, different factors must be analyzed to make the right decision and the objective of any investment is to increase capital.
If you have already decided to invest your money in a business, then why not do it by opening your own online store . Be your own boss and open your digital business with Tiendanube, the Latin American platform with more than 130 thousand entrepreneurs who already sell online.
In any case, you should review the following business performance indicators, as this information will help you calculate the potential return, risk and term of your investment.
Market indicators
These indicators give you an idea of the size of the business's potential market, whether it is local or national, and the opportunity it has to cover it. This allows you to know the chile phone data competitors and the position of the business, as well as its advantages and differentiators.
Sales indicators
When checking sales indicators, you should analyze how the company's growth and turnover have been over time and whether this is sustainable. Also, pay attention to its financial health, whether it has debts, how large they are and how long it will take to pay them off.
Customer Indicators
Customer metrics will show you how much it costs to acquire a new customer, as well as the average sales receipt and, above all, the Lifetime Value (LTV), a key metric that indicates how many purchases each buyer makes and for how long. For a business to be profitable, the acquisition cost must be lower than the LTV.
Conclusion
As we have seen, there are different ways to invest in a business , whether it is your own or someone else's. In any case, different factors must be analyzed to make the right decision and the objective of any investment is to increase capital.
If you have already decided to invest your money in a business, then why not do it by opening your own online store . Be your own boss and open your digital business with Tiendanube, the Latin American platform with more than 130 thousand entrepreneurs who already sell online.