ENTREPRENUERSHIP OPPORTUNITY

An original concept for my own entrepreneurial, growth-oriented venture



Abstract

This Research Report is about Entrepreneurial business model of financial market consultancy service that creates its own customer base. The prime focal point of this feasibility study is to try to create a growing business using minimum financial resources and how to sustain our share in the Consultancy market. The research analyzes many aspects of “Financial Market Mentor” business idea and explains the modalities of operation with particular focus on encouraging potential clients via constant educational encounters and professional interactions with them that help in instilling investment confidence in them. The last part of Research discusses critical success factors that are vital for surviving and competing in the market while securing and maintaining our share by developing soft skills among our personnel.

Table of Contents

Abstract2

Introduction4

Business idea4

Thesis Statement4

Discussion4

Operational viability7

Stocks12

Bonds12

Soft Skills in Financial Market Consultancy13

Conclusion13

References15

An original concept for my own entrepreneurial, growth-oriented venture

Introduction

Business idea

The idea of this entrepreneurial, growth oriented venture is to create awareness among masses of international financial markets and encourage them for investing in financial markets by enabling and supporting them to understand the nature, risk and rewards of these investments. International financial market refers to Forex, Stocks, Bonds and Commodities investment (Davidson, 2002). Investment and trading of these financial instruments can easily be done through the internet using over-the-counter markets. Our mission statement is to become a premier institution to provide an understanding of the nature, risk and rewards of investing in these markets by:

Conducting thorough research (Fundamental and Technical analysis) of these markets.

Developing investment plans that require a mentor.

Thesis Statement

Promoting the understanding of investing in international financial markets encourages everyone to invest with the brokers dealing in the international financial market.

Discussion

Fundamental analysis of a business means analyzing its financial statements and health, its management and competitive advantages, and its competitors and markets. When applied to futures and forex, it focuses on the overall state of the economy, interest rates, production, earnings, and management (Ritchie, 1996). Technical analysis studies supply and demand in a market in an attempt to determine what direction, or trend, will continue in the future. Technical analysis attempts to forecast the direction of prices through the study of past market data, primarily price and volume. Security analysis uses these two tools: news and charts i.e. fundamental and technical analysis respectively (Krantz, 2009).

Forex and Commodity markets involve leverage based trading. Leverage is the facility to pay a minimum amount like 1% of total investment at the time of buying that commodity and then paying the remaining amount at some future date or maturing the contract by paying or receiving the difference in price (Contract for difference (CFD)) of commodity between contract date and maturity date. That means to make investment of $100 you may need only $1 initial consideration to make a contract for $100. Leverage facility magnifies gains and losses; it depends on the type of position you take in a contract. There are two types of position in a contract: Buy and ...