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Many factors go into deciding which company to invest in. Besides
financial consideration, shared values and admiration of the product
or service can also be factors. Each investor has to determine which
criteria are most important to him when deciding to invest in a
company.
Considerations:
Some things to consider when deciding on which company to invest in
are financial strength and management skills. Product appeal and
marketing are also factors an investor must consider.
Time Frame:
Investors may have different time frames for their investments.
Sometimes investors may jump in before a product launch or
anticipated good news hoping for a quick profit. Others invest for a
longer term and are in for the long haul.
Potential:
Sometimes a company will not be earning any money or even have a
product ready to sell, but still remain an attractive option for
investors. This is due to the fact investors are banking on the
future potential of the company and they believe in the current
management to guide the company to its full potential.
Branding:
The value of a company and reasons often extend beyond its financial
statements. A brand name
 has marketing value
and staying power for years to come. If a product has a strong
brand, it may be a compelling reason to invest.
Benefits:
Investing in a company will benefit an investor if the company becomes
profitable. The consumer will benefit if a good product or service
is introduced to the market.
Unavoidable Risks:
No matter how good an organisation’s risk management is, or how much
it spends on risk reduction, there is a high probability that its
operations will be seriously disrupted at some time by an event that
is outside of its control.
To put it simply, it is very likely that an organisation will, at
some point, suffer disruption from an event that is outside of its
control. Having an effective business continuity management process
in place will lessen the effect of such an event, and should enable
the organisation to provide continuity of its operations and
critical functions.
Customers:
One of the most critical and costly aspects of running any kind of
organisation that operates in a competitive market environment is
obtaining and retaining customers.
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