Finance nuggets.
Prioritize Return of investment over Return on investment.
Let’s discuss, Return of investment also know capital is very Important when deciding to invest in any business ventures. This is having an assured level of certainty that your capital will come, at least by 70% worse case scenario. This will give you leverage to make an exit plan when you feel you don’t want to invest again. Example if I want to invest #100,000 in real estate and i predict that due to unforseen circumstances like laws something might preventing me finishing the project it will be wise if I can get out of the business with #70,000 than lose all my capital.

While Returns on investment is as important as the former, this is because it’s the time value of your capital…..so as to keep the worth of the capital same over time… Example if I completed the real estate project with my #100,000 in two years it will be worth #180,000 and by that time it will cost me similar amount to build same estate…….in other words return on investment keeps the worth/value of our capital.

In case of uncertainty or risky investments prioritize RETURN OF INVESTMENT cause opportunities are endless when you have capital.