A Business Blog

The value of something is a measure of how much that something is worth. Value depends on how much benefit and pleasure that something is going to give a person. Value is unique to every individual and is based on personal preferences and circumstances; different people can have a different value for the same item.

The value of a business is basically how much that business is worth. The value of[...]

In my previous posting, I explained the concept of risk and return. Another key building block in finance is the concept of “cost of capital”.

Capital is a resource for a business, in the same way that labor, raw materials and other inputs are resources for a business.

The cost of using this capital depends on the risk profile of the type of capital.

However, this raises the question: What is the overall[...]

Finance is a passion of mine, but for many people, finance is simply gibberish. They just do not get it.

When I look at popular university textbooks, I can understand why people do not get it.

There are hundreds (if not thousands) of pages with formulas, graphs, theories, models, exceptions and examples. Unless you become a banker or a finance manager, most of these details are not relevant.

On top of that, as[...]

What do you need to know to set up a successful hostel business.

In 2002, I spent 9 months traveling through Asia. During those travels, I visited Singapore several times. Singapore is a good hub for travelling in Southeast Asia and many backpackers stop over in Singapore on their way to or from Australia and New Zealand.

At that time, Singapore had plenty of choices for luxury accommodation, but there were almost[...]

There are many ways to the top.

MBA degrees are certainly not the only way. MBA programs work for some and not for others. An MBA degree is certainly not essential to be successful in business and is definitely not essential to start your own business.

However, having said that, an MBA does open doors which otherwise might remain closed, especially when you want to change career or change the geography of[...]