Finance Coach - Vol. 15

Here’s your Monday serving…

Finance tip: Investing

Asset classes. You might hear people talking about different ‘asset classes’, and how their investments are ‘diversified’. An asset class is a grouping of assets (or investment types) that have similar characteristics. The general classes would be deemed as: cash, bonds, property, and equities (also known as shares or stocks). One major difference between asset classes is the amount of risk associated with that particular class, with some being seen as more risky than others. For example, equities are seen as more risky than cash – this is because the return you get on cash is generally guaranteed within a certain range, whereas there is no guarantee with equities, and it’s quite possible that you could lose money. Matched against this risk is the possible return from that asset/investment. More risk = chance of more return. Using equities vs cash again, there is a chance of a much higher return on equities, whereas you would never really get more than a few percent on cash. From the least risky to the most risky, the classes would be in the order of cash, bonds, property and then equities. Being diversified means that you are invested in more than one asset class, which one would generally do to minimize risk (as negative returns in one area could be balanced by positive returns in another).

Business tip: Marketing

Make a scene. If you are looking at launching or advertising a product or service, and want to make a bit of a splash in public, consider making it look like it’s being filmed for TV. Find an area which has high foot traffic (a busy area of a mall, or on a busy sidewalk or park walkway, for example), and set up some lights and a camera or two (they don’t have to be recording, but have them manned). People will always be intrigued by such a set-up, and will be drawn to come closer and see what all the commotion is about. You can then have a stand or small stage set up, where you are showing your goods or talking about your services. Having a small crowd already gathered will also bring more people in, as they may be too shy to be the first ones there, so consider a ‘rent-a-crowd’ (complete with instructions to applaud and make a noise every so often), or rope your family and friends in to fill some space. Pick a time and day when people are more likely to be receptive to your particular offering, and you’re away!