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It's important to evaluate the market before diving into one.          So, in this one we are going to discuss about ten ways how we can evaluate a market in industry, this also for small business. Quote -     So often people are working hard at a wrong thing, working on the right thing is probably more important than working hard.                                            ~ Catrina Fake (American Entrepreneur)  Image Credit: -gimme-shelter.com If you are thinking of starting of new business or expanding an existing business into new market, it pays to do some research that is given as bellow. 1) Urgency -           How badly do people want or need this right now? Renting an old movie is low urgency. 2) Market Size -                      How many people are purchasing things like that. 3) Pricing Potential -           What is the highest price a typical purchaser would be willing to spend on solution. 4) Cost Of Customer Acquisition -           How easy is to acquire a new custome

 Economics is the study  of how people make choices under conditions of scarcity and the impact of those choices for people at an individual level and society at macro level . Image Credit - https://www.slideshare.net Economics is further divided into two types which are      * Micro-Economics   * Macro-Economics ·Micro-Economics - Micro-Economics is the study of behavior of individual and their decision on what to buy and consume based on prevalent price. USES -     1) Micro-Economics deals with the understanding and working of a free market economy .     2)Micro-Economics helps us understand how the prices of the product and services get determined in an economy. How individuals and firm behave with regard to those prices and how goods and services in an economy are distributed along its various participants .  ·Macro-Economics -   Macro-Economics deals with big pictures like that affects microeconomics for example GDP , Unemployment rates, overall price levels , inflation , saving r

Bond -            -  " Bonds are the securities which represent a loan". Some Important terminologies used in bonds :-            · A loan amount = Principal Amount .             ·  Maturity = Time fir which the loan is taken .             ·  Rate at which loan is taken also known as coupon .  Image Credit - ptaindia.com There are many, different types of bonds, some important types of bonds are discussed bellow - 1) Zero-Coupon Bond - Bonds which do not pa any coupon (interest) are known as zero-coupon bonds  .     Rate on these bonds is not calculated in the form of  coupon (interest) but calculated as difference between issue price and redemption value . These bonds are issued at discount price of their face value and are redeemed as par. These types of bonds come with some maturity period. EXAMPLES -     Treasury Bills also known as T-Bills, These are generally issued by Government ,Commercial paper issued by corporates and certificate of deposits issued by banks and fina

        In Quantitative Dimensions  we discuss/analyze about Basic of balance sheet and profit and loss statement . image credit :-  zarantech.com This is very basic and usually consume less time therefore we must check out about this before investing in one .         So let's start with the              ·Basic Of Profit And Loss Statement - 1) Net Sales / Sales -         Sales or net sales is the total sales before paying any expense. 2) Direct Cost / Expenses -         Direct cost or expenses includes expenses like cost of row material , Semi-variables, Employees costs or fixed machinery and plant(building) or anything etc. 3) EBITDA (Earning Before Interest, tax, depreciation, amortization) -          This concept is very easy to understand as it clarifies from its name , it is the earning which is left from the sales just after paying business expenses . Let's understand Depreciation and Amortization -                 Amortization  - Amortization is the process of spreading

     *   One must appreciate that sooner or later 'great quality' would reflect into 'great quantity' sooner or later .     ·  Some qualitative question in analysing company -     Q- How are things changing around (consumers takes and performance) ?     Q- What would be relevant tomorrow and what would become irrelevant ?     Q- How is competition shaping up in industry ? Who are new entrants including external ones ?     Q- Entry barriers in that industry .     Q- Why would business continue to lead ?     Q- How is the quality of the management ?     Q-What is the perception of bankers and other stake holders of the company towards it ? There are many more questions but these are must to ask before investing in a company .     · Understand business and business models  Starting point of qualitative research on nay business has to be question such as -     Q- What does company do and how does company do ?     Q- Who are the customers and why do customers buy those produ