8 Ways of Achieving Great Returns on Business-Related Investments

By Richard Pettinger

Part of Competitive Strategy For Dummies Cheat Sheet (UK Edition)

In each stage of deciding, implementing and developing competitive strategy in business, you make investments on which you expect returns. Remember the following important and straightforward tips for ensuring that your investment opportunity is going to deliver the returns that you seek.

  • Always know and understand what you’re investing in, and what returns are available.

  • If you want returns of a particular percentage, you must go into areas in which these returns are available.

  • If you want to work in a particular sector, you must accept the returns on offer.

  • If you’re calculating returns on investment, remember to include everything (staff, technology, premises and equipment as well as money) that you’re investing.

  • Things can change, and you may not get the returns that you seek. As the UK financial services authorities always say, ‘The value of your investment can go down, as well as up.’ It applies to everyone!

  • In many cases, people invest in things they want (rather than need), and then seek the reasons for doing so afterwards – which is always wrong.

  • Check everything in which you’re investing and inspect for risks and flaws.

  • When you go into partnership with anyone, remember that the others have the right to expect returns as well.