Business 101: BUY LOW, SELL HIGH with Minimum Risk
Ask anyone with a background or education in business what the basis for success in any business and you will get a list of ideas that are all centered around the idea of BUY LOW, SELL HIGH. This is especially obvious for retailers, but all business is based on making a profit which is the positive net difference between expenses and income generation. If it costs a business more money than it generates in income, it is losing money and will not survive unless it can reduce it expenditures while increasing incoming revenue streams. Bottom line, this is Business 101.
The second most important factor in business is risk. There is always risk in business; the key to success is to reduce the level of risk exposure for every venture. Any good financial advisor will quickly tell his clients to diversify their portfolio to maintain a steady account balance between high risk investments with potentially high yields and low risk investments with proven track records which usually have lower yields. Exposing yourself to only high risk programs can be profitable if you are very lucky, but more often than not the final outcome can be very expensive with a major loss.
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