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Understanding the Philosophy and Business Model of a Stock Investment Business

Most people view their investments in the stock markets as an investment play and not as a business operation. While this may be okay for most investments, it is important to realize that there is a small but growing percentage of investors who view their forays in the stock markets as a business venture and who operate their investments accordingly. These are the true professional investors and traders who capture the privileges of reaping the best profits from the market. In many ways their success is based on the misfortunes of the large cadre of non-professional, non-business investors.

The professional business operator is more than just a self-controlled and directed investor. This business operator is one who has structured his operations, lifestyle and business around the concept that there is no opportunity better than the market to generate percentage returns for the time, energy and money invested. She is therefore structured to take advantage of this fact and the fact that the stock market controls the economy, so as the stock market goes, so goes the general economy, and therefore so goes every non-publicly traded business. In other words even when the stock markets go into a downturn it is very likely that the entire economy including the private business and investment world will follow. There is no retreat from the dominance of the stock markets in modern economies. The professional stock investment business philosophy, business model, and plan is to maximize operations in the one place that will eventually benefit and lead the way in a boom economy. This place is the stock markets, historically and theoretically.

This philosophy and business model says that the ability to buy into already successful companies, as much as you want, when you want is a unique aspect of business development. When combined with the capability to liquidate your ownership, assets, holdings, and liabilities almost at will this model becomes such a powerful model it becomes almost to good to be believed. The experiential fact that the richest people in the world have used it either directly or indirectly to get where they are financially also says a lot.

Like in any other business the barriers to success in this business are all about knowledge, persistence and hard work. The difference between the professional investment business and others however is the unlimited potential for true wealth accumulation in this business.

The need for significant amounts of money to get started is often viewed as a barrier by many who falsely believe this is a necessity. Many are deterred from the business of stock investing due to this perception. In actuality it is one of the few businesses in modern economies that can be started with very little capitalization, and which can intrinsically grow more quickly than other traditional businesses.

Even those who understand the potential of this business model often feel like they must find significant capital from some other business practice in order to have enough money to be in the stock market. This fallacious reasoning is the direct result of the traditional approach which most investors follow treating investing in the stock markets more as an investment for retirement play than as a business vocation. This is in part due to the historical reliance on full service brokers by most investors. With the advent of the Internet and online investing the move toward self-controlled and directed investing will effectively increase opportunities and perceptions about stock investing and trading as a business vocation.

The simple truth of the matter is that you will most likely have to raise monies to develop the other business first anyway. Unless you have a source of money restricted to a particular type of business, any money raised would be better spent to directly capitalize your stock investment business. Entering into some other business with the ultimate goal of investing the profits in the stock markets is probably putting the cart before the horse.

The reality is that a stock investment business can be started very small with small amounts of money and like most other successful business starting from scratch and growing with time. In fact due to the many advantages of such businesses they are more likely to be able to be started small and to grow quickly into profitability.

However for the entrepreneurial types certain traditional businesses do work better alongside a stock investment business. These businesses fall into the service category generally, and into the brokerage and consultancy areas more specifically. Brokering involves selling something that someone else owns to another person, consultants sell their expertise in specialized areas. Brokerage and consultancy services obviously require some capitalization however the need for significant capitalization is not as demanding as in developing and operating other types of businesses. For example a real estate sales broker may be capable of making significant commissions without the expenditure of significant capital, as can a consultant who is paid more for his knowledge, advice and or analysis than for the capitalization of his business. These types of businesses are therefore perfect complementary business for individuals who recognize the power of stock investments as their primary business venture, but who may need to generate capital in other ways during the process of initially building and capitalizing their stock investment business. In addition, a stock investment business works well alongside many traditional employment opportunities, where working a job avoids the vicissitudes of running another business. Developing and operating another business many times may get in the way of developing your stock investment business. Individuals already established in their own business have perhaps the best opportunity for developing and capitalizing a stock investment business.
 

For Further details of the Hannaian Business network and its associated business opportunities visit the Business Opportunities Section of the Hannaian Publishing Website at
http://www.hannaian.com/distribr.htm