10 Steps on How to Develop a Business Properly

(A Business Development Manager’s Point of View)So you want to develop a business, huh? Well, you’re just in luck. This article will help you whether you are planning to start up new or have an existing business that you would like to expand. This is a step by step guide on how to start, improve, and expand a business while minimizing loss on your part. If you are starting new, please read this article carefully from the very beginning. For those, who already have an existing business and would like to improve or expand, the latter part of the article will be more useful.Every business starts with an idea. You will find that throughout the article, I have emphasized the mental aspects of people rather than physical or financial aspects. Call me philosophical, but the mind is where everything happens. I have seen and experienced it time and time. When your mind is fully committed, there is literally nothing that you cannot do. Let’s begin.Step 01: Find Your PassionTo start a business, you need to find out what it is that you are truly passionate about. “Why is that important”, you say? The answer is simple. You really do not want to get yourself stuck into a kind of work that you hate. There are plenty of planning and executing involved in a brand new business and if you are passionate about it, they would not feel like work at all compared to a kind of business you do not care for. After all, happiness is the end result of anything that we do in life. Why not choose a business that would make you happy while doing it?”When your vacation becomes your vocation, you have succeeded in life”.Step 02: How to Sell ItNow that you have found your passion, let us figure out how to use it to bill people who are in need of the kind of service you can provide. Even though yours is the most ridiculous passion ever, believe me, there are millions of people who would be glad to have your services. As a matter of fact the stranger and more unique your passion is, the more likely you are to succeed simply because that type of business doesn’t exist yet. That also doesn’t mean that if your passion is something common or usual, you shouldn’t do it. Even if it is something common, if you really love it, you will always find ways to do things differently than the others and that itself is the winner.Let’s say that you are passionate about cars. You are more likely to succeed in an auto shop, auto parts shop, or a repair and modification shop. Sure, there are plenty of those out there, but if you love it, it is going to be one of a kind. Maybe your shop has a nice waiting area where your customers can have a seat and a free beverage when they come to drop off or pick up a car, or you may have free stickers complementary to having their breaks fixed. Once you’re in the business, you’ll figure that out.Step 03: The PlanningWrite down your unique ideas and prepare a presentation. Take some time to do it. You should not rush this part. If a new idea comes while you are in the middle of the planning stage, do not hesitate to change. Edit and modify until you are fully satisfied and you can see a clear mental picture of your business. I cannot emphasize how important this is. You have to be absolutely clear and certain. If there are parts that are hazy, leave for a while, do something else, and come back to the planning table again when your mind is clear. You will see later how we will reuse this step over and over again.A thing to remember here is that I am not talking about the “Hows”. At this point, you’re not thinking how you will start the business. That will come later. Your focus at this stage is the “Whats”. If you start thinking about the “Hows”, you will ruin your plan because you will start to think about things such as “How do I get the capital”, “How am I going to find an ideal place” etc. The “Hows” will show up later when you are clear about the “Whats”.Step 04: Visualize Your SuccessNow that you have had the clear picture of your business, visualize how it would look and feel when it is fully operational and successful. You must be able to taste the success. This again is another important stage. Why-you ask? There will be obstacles on your way to success. This is the picture that will keep you going. It will also help keep your team motivated in the future should you need to inspire them in times of hardship. You, the leader, must have that picture of success handy at all times.Step 05: The NeedsYou are clear about what your business will be and you have a clear picture of success. By now, you are mentally ready, so let’s get physical. The physical needs of the business include 3 things: infrastructure, personnel, and finance.Infrastructure: If your business is local such as an auto repair shop, you will need a space, an office, a storage area, and some furniture. If your business is virtual, you will need a website or other computer based applications. In any case, you have the clear picture (Step 03), so you can create a list of infrastructural needs.Personnel: If it is a kind of business that you can do totally on your own, then you are it. If not, you are going to need assistance. Use Step 03, and find out how many people you will need and what their jobs and qualifications should be. You may also look among your friends, relatives and acquaintances that may have those qualifications and would be happy to help you in the beginning. Having a good friend or partner at this stage is very helpful. If you have a friend who shares almost the same vision as you, you have hit the jackpot. Things are a lot easier with a good friend beside.Finance: This part is slightly uncomfortable for a lot of people. For this reason, a lot of great ideas never see the light of the day. Many would give up at this sector because they believe there is no money. If you feel that, please remember that the financial industry was built on great ideas. It is their purpose to invest. How else do you think the Empire State Building was built? One person didn’t put all his money into it. The idea was great and was simply backed by several financial institutions. The truth is there are numerous banks, lending agencies, and investors who are looking for a great idea to invest in.However, ideally you, as the owner of the business, should have at least half the initial capital you need. If you are currently in a job, you can start saving up. If you already have the money, begin at once. If you do not have anything, use your Step 03 presentation to attract a wealthy relative, friend or an investor.I have mentioned in the beginning of the article how important the mental aspects of the people are. I would like to elaborate on this a little bit more since finance is a huge issue. Fear is your only true enemy here. This is the only one thing that you have to overcome, and you have to face it no matter what. I will help you with a few tips on how to do it, but you have to walk this path.First of all, it is okay to be afraid. It is a part of who we are. Just remember that “Courage is not the absence of fear. It is having fear and still doing the thing you are afraid of”. In other words, FACE IT. After all, “At the end of our lives, we only regret things we haven’t done or chances we haven’t taken”. What is the worst that could happen? We all die, and it is better to die quickly doing something we love than live a long boring life doing things that are safe and comfortable. Use Step 04 and have that taste of success, and get out there. Here are a few types of fear that you may have and how to overcome them:Fear of Rejection: Yes, you will be rejected. Not a lot of people would understand what it is you are trying to do, so do not take it personally, and move on to the next. When you do your presentation, prepare your best and do it with passion. People invest in sincerity. I know I would. I would invest my own money if I saw a person who was genuinely passionate about a project even though I didn’t understand the business. Why? Because he would not give up on this until successful, so it pays to have your Step 01.Fear of Loss: There is always a possibility of loss. After all, it is a new business and you do not know all the pits and falls. Trust in yourself that if you make a mistake and have a loss, you will also know how to get out of it. It is your idea, and you know best. Loss will happen when it happens, and you will know what to do then- no need to worry now.Fear of Embarrassment: Yes, there are those who would always have something to say especially when you are having a hard time. You will be ridiculed and laughed at. However, wouldn’t that be sweeter when you come around triumphant? How could you win if you have never been defeated? Prepare to take the embarrassment and defeat, use Step 04 through these times, and come back a winner. People remember a hero- not an average person.I hope the tips on fear would help you overcome it. Now that you have found the capital provider/s, there is one thing you should consider. Find an investor who is willing to wait for the business to properly run, which is ideally 6 to 8 months. There are investors, banks or lending agencies that would loan you the money but would want their interests or return of investment (ROI) almost immediately. This is short sighted. A wise investor knows that if the business isn’t fully operational and he starts to claim his money, neither will the business succeed nor will he get his money back. Therefore, choose someone who will wait. That way, the business is safe and the investor gets his full ROI.Step 06: StartFind your place, find your personnel, and go for it. Use your partner as a right hand man and divide jobs. One can find a place and buy the furniture and the other can do the hiring. Hire the best quality people you can. Keep in mind that the first set of employees will be your core team, and you must be comfortable working with them. Remember Step 03, so you will know how many people you need and what qualifications they must have.Step 07: EmployeesMake sure everyone knows clearly what they are doing. Create a fair employment policy where good jobs are rewarded. Also, make sure that employees that are not really up to the job are given chances and training before you let them go. It sometimes helps to pair up one good employee with another bad one so that the bad one can learn from the good. You may also create a profit sharing plan. This makes employees take care of your business as if it is their own.Step 08: MarketMarket your business and do it professionally. Once you have established your business, you must reach as many customers as possible. You may ask a professional photographer to take pictures of your facility, and ask a graphic designer to create brochures.Online presence is also important. Create a good website. It is easy nowadays, but if you have the means, give it to an IT professional. See if you can create an app for smartphones for the services you provide. Offer promotions and discounts on your brochures and website.Regularly meet your core team to discuss how to improve services or reach more customers. Have an open mind, take all their ideas and pick the ones that best suit you, and execute. These are several ways to market your business: Door to Door Marketing, Telemarketing, SEO, API (Create an app), Advertising.On my next article, I will solely focus on Marketing Strategies.Step 09: ExpandExpand your business. You already have one business model now, so all you have to do is copy and paste, so do not refuse a chance to expand. If it is a local business that serves only the local customers, open another branch or start franchising it to other cities. At this point, financing should not be a problem. Plenty of investors and financers will gladly give you the money. If it is an online business, expand your SEO or Customer Support team, and the whole world will be your market.Step 10: BalanceLast but not least, create balance in everything you do. From the very first step to the last, balance is the key. The lesson on balance is huge, but I will discuss it briefly.Too much of anything is bad. Do not work so hard that you lose your family, friends or health. After all, money is no good if you cannot share it with people you love, or if you have to spend most of your money in the hospitals. You have to keep the balance between your business and personal life. Also, no good idea can come out of you if you are overworked and tired all the times. When you feel stuck, get away for a while and come back later. You will find a solution.There are ups and downs in life as well as in business. The lesson on balance also tells us that you should be cautious when you are succeeding and patient when you are failing. When you are succeeding, do not spend money unnecessarily on things you don’t need. Also, when you are failing, do not give up because success is just around the corner. It is the darkest before dawn, so “This too shall pass”.You must also create a balance between you and your employees. You are their leader. If you are too hard on them, they will quit or even worse sabotage the business. If you are too soft, they will play more than work.At the end, all businesses are about people. From your employees to your investors to your customers, balance all relationships. Share and enjoy your success.ConclusionI have gathered the information for this article from different life coaches, motivational speakers, and my own life experiences as a business developer. I hope it helps. Dream big and go for it.

Post Workout Nutrition

Just how important it is to fuel yourself after a workout?In my opinion, it depends… it depends on your goals and it also depends highly on how good your nutrition throughout the rest of the day is.Post workout nutrition (PWO) is a much debated topic, some people will swear by the importance of PWO nutrition within 30-40min of finishing a workout, while others will claim it’s not as important as made out to be. In this article I will cover both topics and explain the reasoning behind them.A post-workout meal could be a solid meal or liquid nutrition (meal replacement shake). When it comes to PWO nutrition soon after exercise, liquid nutrition is known to be an easy way to get the nutrients to the muscles quickly while they are highly receptive to it. The theory is that the insulin elevation brought on by a PWO shake will help shuttle carbohydrates and amino acids (proteins) into muscle cells and encourage protein synthesis.If you’re goal is to increase muscle mass, I would recommend a post workout shake within a maximum of 40min of finishing up your exercise session, and following up with a meal 60-90min later. The post workout shake should consist of high GI (Glycemic Index) carbohydrates, protein, micronutrients (vitamins, minerals, antioxidants, enzymes, etc) and should be low in fat.In this case, it’s necessary to consume enough carbohydrates to promote a substantial insulin release, as spiking the insulin hormone will open up the window for carbohydrates and proteins to get into the muscles and start repairing tissue. It’s hard to say exactly how much carbohydrates you should consume, because if you consume too much the excess carbohydrates not used could turn into stored body fat.Research has shown however, that an intake of 0.8 to 1.2 grams per 1kg of body weight (that’s lean body mass), increases the insulin response and accelerates protein/muscle repair. If you want to use this math, I would recommend 0.8g of carbohydrates per 1kg of lean body weight, unless you have done a really long intense training session, in which case you may feel better consuming more.It’s also important to include micronutrients in your initial post-workout nutrition, as the micronutrients help in the transportation of protein to muscles, and dramatically enhances the rate of repair of muscle tissue (as there are more nutrients the body needs and can use). In addition, during a workout session, the body’s immune system gets damaged and increasing the micronutrient consumption post-workout and during the rest of the day, will help boost the immune system back to optimal/above optimal levels.Make sure though that your workout is worth it. A 30min high intensity session probably won’t bring your glycogen levels down low enough for them to need to be replaced. If you have a high GI post workout drink and your glycogen levels aren’t lowered, chances are you’re probably just going to spike your insulin levels higher than they need to be to contribute to long term health benefits, and as a result you will store fat.Now, if your goal is to reduce body fat then there is a whole other side to the PWO nutrition story, and that is to not have PWO nutrition directly after a workout session, but to fast (not eat) for 1.5-2hrs after your session.The main factor to keep in mind here is what nutrition you are eating during the day, if you are providing your body with efficient amounts of protein, carbohydrates, fats and micronutrients during the day, a post-workout nutrition shake/meal isn’t all that necessary especially if the body composition goal in mind it to reduce stored body fat.I will only recommend fasting after a workout if you have an extremely good diet throughout the day (meaning you are providing your body with efficient amounts of protein, carbohydrates, fats and micronutrients), as this nutrition alone should be enough for the body to repair itself after a workout, leaving a post-workout nutrition shake/meal becoming not all that necessary, especially if the body composition goal in mind it to reduce stored body fat.If the day’s nutrition is solid, I see no reason why muscle repair and performance goals would be affected by a lack of initial post-workout nutrition. If you do not eat a good diet however, then you just won’t be fueling your body correctly for this to take place.The idea of a post workout fast isn’t to starve yourself in order to reduce your total calorie intake, the idea however is too delay the meal in order too obtain the benefits of fasting without the calorie deficit. Calorie depriving is a whole different topic all together, but in short, calorie depriving is not good for you in the long term.A 1.5-2hr fasting window after a workout will require the body to burn up energy; if there is no energy coming in through food consumption, the body will look elsewhere, and the number one place for that is stored body fat. Hence the reason the post-workout fast can be quite beneficial to those wanting to reduce body fat.So make sure your diet is good, which it should be anyway if you are wanting to achieve optimal health and performance. Un-fortunately I know too many people who believe they eat really well, but in reality have a very poor diet in regards to nutritional quality and quantity. So here are some quick pointers on determining whether or not your diet will balance up a post workout fast;If you don’t feed your body bad foods (i.e. grains, starches, sugar, processed foods) instead of real food, you are most likely eating healthy and your body is running effectively. On a more thorough note though, when it comes to looking into your diet on a daily basis, if you eat the following, you are definitely on your way to good heath;
Eat at least 1.2g protein per Kg of lean muscle mass

Obtain carbohydrate sources from fruits and vegetables

Consume omega3 fish oil everyday

Consume enough calories for your body to function properly

Be consistent with good nutrition

If you are un-sure about the quality of your meals and your nutrition, monitor it for a week and look over it, measure and write down the food you eat, you may be surprised at what you are actually eating.In conclusion, if you want to lean out, delaying your PWO nutrition could be a good option. But if you want to put on muscle mass or have just completed a long workout where your glycogen levels are low, a PWO nutrition shake may become pretty important.And if you’re still un-certain as to what to do, play around with what happens to your body composition when having a PWO shake Vs not having one, then make a decision. There are many studies out there which will show benefits in both of these situations, but its best if you take a personal approach on the situation and see what works best for you, as there isn’t a single protocol that works well for everyone.

Finance, Credit, Investments – Economical Categories

Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.

The definition of totality of the economical relations formed in the process of formation, distribution and usage of finances, as money sources is widely spread. For example, in “the general theory of finances” there are two definitions of finances:

1) “…Finances reflect economical relations, formation of the funds of money sources, in the process of distribution and redistribution of national receipts according to the distribution and usage”. This definition is given relatively to the conditions of Capitalism, when cash-commodity relations gain universal character;

2) “Finances represent the formation of centralized ad decentralized money sources, economical relations relatively with the distribution and usage, which serve for fulfillment of the state functions and obligations and also provision of the conditions of the widened further production”. This definition is brought without showing the environment of its action. We share partly such explanation of finances and think expedient to make some specification.

First, finances overcome the bounds of distribution and redistribution service of the national income, though it is a basic foundation of finances. Also, formation and usage of the depreciation fund which is the part of financial domain, belongs not to the distribution and redistribution of the national income (of newly formed value during a year), but to the distribution of already developed value.

This latest first appears to be a part of value of main industrial funds, later it is moved to the cost price of a ready product (that is to the value too) and after its realization, and it is set the depression fund. Its source is taken into account before hand as a depression kind in the consistence of the ready products cost price.

Second, main goal of finances is much wider then “fulfillment of the state functions and obligations and provision of conditions for the widened further production”. Finances exist on the state level and also on the manufactures and branches’ level too, and in such conditions, when the most part of the manufactures are not state.

V. M. Rodionova has a different position about this subject: “real formation of the financial resources begins on the stage of distribution, when the value is realized and concrete economical forms of the realized value are separated from the consistence of the profit”. V. M. Rodionova makes an accent of finances, as distributing relations, when D. S. Moliakov underlines industrial foundation of finances. Though both of them give quite substantiate discussion of finances, as a system of formation, distribution and usage of the funds of money sources, that comes out of the following definition of the finances: “financial cash relations, which forms in the process of distribution and redistribution of the partial value of the national wealth and total social product, is related with the subjects of the economy and formation and usage of the state cash incomes and savings in the widened further production, in the material stimulation of the workers for satisfaction of the society social and other requests”.

In the manuals of the political economy we meet with the following definitions of finances:
“Finances of the socialistic state represent economical (cash) relations, with the help of which, in the way of planned distribution of the incomes and savings the funds of money sources of the state and socialistic manufactures are formed for guaranteeing the growth of the production, rising the material and cultural level of the people and for satisfying other general society requests”.
“The system of creation and usage of necessary funds of cash resources for guarantying socialistic widened further production represent exactly the finances of the socialistic society. And the totality of economical relations arisen between state, manufactures and organizations, branches, regions and separate citizen according to the movement of cash funds make financial relations”.
As we’ve seen, definitions of finances made by financiers and political economists do not differ greatly.
In every discussed position there are:

1) expression of essence and phenomenon in the definition of finances;

2) the definition of finances, as the system of the creation and usage of funds of cash sources on the level of phenomenon.

3) Distribution of finances as social product and the value of national income, definition of the distributions planned character, main goals of the economy and economical relations, for servicing of which it is used.

If refuse the preposition “socialistic” in the definition of finances, we may say, that it still keeps actuality. We meet with such traditional definitions of finances, without an adjective “socialistic”, in the modern economical literature. We may give such an elucidation: “finances represent cash resources of production and usage, also cash relations appeared in the process of distributing values of formed economical product and national wealth for formation and further production of the cash incomes and savings of the economical subjects and state, rewarding of the workers and satisfaction of the social requests”. in this elucidation of finances like D. S. Moliakov and V. M. Rodionov’s definitions, following the traditional inheritance, we meet with the widening of the financial foundation. They concern “distribution and redistribution of the value of created economical product, also the partial distribution of the value of national wealth”. This latest is very actual, relatively to the process of privatization and the transition to privacy and is periodically used in practice in different countries, for example, Great Britain and France.

“Finances – are cash sources, financial resources, their creation and movement, distribution and redistribution, usage, also economical relations, which are conditioned by intercalculations between the economical subjects, movement of cash sources, money circulation and usage”.
“Finances are the system of economical relations, which are connected with firm creation, distribution and usage of financial resources”.

We meet with absolutely innovational definitions of finances in Z. Body and R. Merton’s basis manuals. “Finance – it is the science about how the people lead spending `the deficit cash resources and incomes in the definite period of time. The financial decisions are characterized by the expenses and incomes which are 1) separated in time, and 2) as a rule, it is impossible to take them into account beforehand neither by those who get decisions nor any other person” . “Financial theory consists of numbers of the conceptions… which learns systematically the subjects of distribution of the cash resources relatively to the time factor; it also considers quantitative models, with the help of which the estimation, putting into practice and realization of the alternative variants of every financial decisions take place” .

These basic conceptions and quantitative models are used at every level of getting financial decisions, but in the latest definition of finances, we meet with the following doctrine of the financial foundation: main function of the finances is in the satisfaction of the people’s requests; the subjects of economical activities of any kind (firms, also state organs of every level) are directed towards fulfilling this basic function.

For the goals of our monograph, it is important to compare well-known definitions about finances, credit and investment, to decide how and how much it is possible to integrate the finances, investments and credit into the one total part.

Some researcher thing that credit is the consisting part of finances, if it is discussed from the position of essence and category. The other, more numerous group proves, that an economical category of credit exists parallel to the economical category of finances, by which it underlines impossibility of the credit’s existence in the consistence of finances.

N. K. Kuchukova underlined the independence of the category of credit and notes that it is only its “characteristic feature the turned movement of the value, which is not related with transmission of the loan opportunities together with the owners’ rights”.

N. D. Barkovski replies that functioning of money created an economical basis for apportioning finances and credit as an independent category and gave rise to the credit and financial relations. He noticed the Gnoseological roots of science in money and credit, as the science about finances has business with the research of such economical relations, which lean upon cash flow and credit.
Let’s discuss the most spread definitions of credit. in the modern publications credit appeared to be “luckier”, then finances. For example, we meet with the following definition of credit in the finance-economical dictionary: “credit is the loan in the form of cash and commodity with the conditions of returning, usually, by paying percent. Credit represents a form of movement of the loan capital and expresses economical relations between the creditor and borrower”.

This is the traditional definition of credit. In the earlier dictionary of the economy we read: “credit is the system of economical relations, which is formed while the transmission of cash and material means into the temporal usage, as a rule under the conditions of returning and paying percent”.
In the manual of the political economy published under reduction of V. A. Medvedev the following definition is given: “credit, as an economical category, expresses the created relations between the society, labour collective and workers during formation and usage of the loan funds, under the terms of paying present and returning, during transmission of sources for the temporal usage and accumulation”.

Credit is discussed in the following way in the earlier education-methodological manuals of political economy: “credit is the system of money relations, which is created in the process of using and mobilization of temporarily free cash means of the state budget, unions, manufactures, organizations and population. Credit has an objective character. It is used for providing widened further production of the state and other needs. Credit differs from finances by the returning character, while financing of manufactures and organizations by the state is fulfilled without this condition”.

We meet with the following definition if “the course of economy”: “credit is an economical category, which represents relations, while the separate industrial organizations or persons transmit money means to each-other for temporal usage under the conditions of returning. Creation of credit is conditioned by a historical process of fulfilling the economical and money relations, the form of which is the money relation”.

Following scientists give slightly different definitions of credit:
“Credit – is a loan in the form of money or commodity, which is given to the borrower by a creditor under the conditions of returning and paying the percentage rate by the borrower”.
Credit is giving the temporally free money sources or commodity as a debt for the defined terms by the price of fixed percentage. Thus, a credit is the loan in the form of money or commodity. In the process of this loan’s movement, a definite relations are formed between a creditor (the loan is given by a juridical of physical person, who gives certain cash as a debt) and the debtor.
Combining every definition named above, we come to an idea, that credit is giving money capital of commodity as a debt, for certain terms and material provision under the price of firm percentage rate. It expresses definite economical relations between the participants of the process of capital formation. Necessity of the credit relations is conditioned, from one side, by gathering solid quantity of temporarily free money sources, and from the second side, existence of requests of them.

Though, at the same time we must distinguish two resembling concepts: loan and credit. Loan is characterized by:

o Here, the discussion may touch upon transmission of money and also things form one side (loaner) to another (borrower): a)under the owning of the borrower and, at the same time, b) under the conditions of returning same amount or same quantity and quality of the things;

o The loaning of money may bear no interest;

o Any person may take part in it.
With the difference with loan, credit, which is somehow a private occasion of the loan, represents:

o One side (loaner) gives to the second one (borrower) only money, and _ for temporal usage;

o It may not bear no interest (if the assignment doesn’t foresee something);

o In it creditor is not any person, but a credit organization (at the first place, banks).
So, a credit is the bank credit. To our mind, it is not correct to use “credit” and “loan” as the synonyms.
Banking crediting is the union of relations between bank (as a creditor) and its borrower. These relations touch upon:

a) Giving a certain amount of money to the borrower for definite purpose (though, we meet with the so-called free credits, aims and objects of crediting are not appointed in the assignment);

b) Its opportune returning;

c) Getting percentage rate from the borrower for using the sources under his/her disposal.
The essential foundation of the credit essence and its important element is existence of trust between the two sides (in Latin “credo”, from which comes the word “credit”, means “trust”).
From the position of circulation of money forms (in the abstraction, historical process of formation economical relations and social budget and banking systems expressed by them) comparing different definitions of finances and credit, the paradox conclusion appears: credit is the private occasion of finances. And truly, from the position of movement of the money forms, finances represent the process of formation and usage of the funds of cash means. Very often such movements are fulfilled without returning, but sometimes, it is possible to give loans from the budget for the investment projects of other needs. Also, when a manufacture or corporations use their cash funds and we mean the finances of industrial subject, such usage may be realized as inside the manufacture or corporation (there is no subject about returning or not returning of the usage), so gratis under conditions of returning. This latest is called commercial form because of transmitting the sources to others, but even in this occasion, it is the element of financial system of the manufacture and corporation.

From the point of cash means movement, main character of credit is the process of formation and usage of the funds of cash means under the conditions of returning and, as a rule, taking the value-percentage. If gating the credit value doesn’t take place (even in the exceptional occasions), according to the movement form, credit becomes a private occasion of finances, as from the net financial funds (consequently from the state budget) the loans which bear no interests may be used. If gating credit value takes place, by the appearance form, credit is discussed to be financial modification.

From the historical point of view, finances (especially in the sort of the state budget) and credit (beginning with usury, later commercial and banking) were developing differently for considering credit to be the part of finances. Though, from the genetic-historical point of view, previous loaners, before giving loan, needed gathering the permanent capital not returning, that is the net financial foundation. The banks analogously needed concentration of the important own capital for influxing the consumers’ means and for getting higher percentage rate under the conditions of returning. Herewith, exactly on the financial basis, in the sort of financial fund (which later partially becomes loan fund) part of the bank capital appears to be the reservation (insurance) part of the fund, which by nature is financial and not loan. So notwithstanding the essential distinctions between finances and credit form the genetic-historical point of view, credit appears to be formed from finances and represent their modification.

From the essential position of expressing economical relations of finances and credit, we meet with cardinal distinctions between these two categories. Which mostly expressed by the distinction of the movement forms notwithstanding they are returnable or not. Finances express relations in the aspects of distribution and redistribution of social product and part of the national wealth. Credit expresses distribution of the appropriate value only in the section of percentage given for loan, while according to the loan itself, a only a temporal distribution of money sources takes place.
Herewith, there is a lot of common between the finances and credit as from the essential point of view, so according to the form of movement. At the same time, there is a significant distinction between finances and credit as in the essence, so in the form too. According to this, there must be a kind of generally economical category, which will consider finances and credit as a total unity, and in the bounds of this category itself, the separation of the specific essence of the finances and credit would take place.

Funding of the cash means is common to the researched economical categories. It takes place in any separate system of finances and credit, which have been touched upon during the analyses of defining finances and credit. Word combination “funding of the cash sources (fund formation)” reflects and defines exactly essence and form of economical category of more general character, those of finances and credit categories. Though in the in economical texts and practice, it is very uncomfortable to use a termini, which consists of three words. Also, “unloading” with an information hardens greatly its influxing into the circulation even in the conditions of its strict substantiation and thoroughness.
In the discussing context we consider:

1) wide and narrow understanding of economical category of the finances;

2) discussing finances in narrow understanding under general traditional meaning;

3) discussing finances, as funding of the cash means, in wide understanding, which concerns finances – in narrow meaning and credit – in complete meaning.
Termini “funding” and its equivalent “fund formation” are used by us as the purposeful structuring of cash means, which is based on two poles – accumulation of money sources (gathering) and its usage for definite purpose in the way of financing and crediting.
We have established a new termini – “finance-investment sphere” (FIS). Analyses about interrelation of finances and credit made by us give us an opportunity of proving, that in the given termini, the word “financial” is used with the meaning of funding cash sources, its purposeful structuring. In this process we consider at the same time financial, credit and investments’ economical categories.

Let’s sum up middle results of discussing new concept – “finance-investment sphere” and discuss its investment consisting parts.

The concept “investments” was brought into the native economical science from the West. In the Soviet economical science they for a long time used in the place “investments” the termini “capital placement”, which expressed the usage of the industrial factors in the sphere of real industrial activities during realization of capital projects. From one glance, this termini in its concept is identical to the “investments”, consequently it is possible to use them as synonyms. Though the termini “investments” and “investing” have the advantage towards the termini “capital placement” from linguistic and philological points of view, because they are expressed with one word. This is not only economical and comfortable in the process of working with the termini “investment” itself, but also it gives an opportunity of termini formation. More concretely: “investment process”, “investment domain”, “finance-investment sphere” – all these termini are much more acceptable.
Changing native economical termini with foreign ones is purposeful, if it really matters (by keeping parallel usage of the native termini for the inheritance). Though we must not change native economical termini into foreign ones all together, when by ordinal traditional language easy to explain private and narrow concrete processes and elements get their own termini. The “movement” of these termini is approved in the narrow professional bounds, but their “spitting out” into the economical science may turn economical language into the tangled slang.

Let’s discuss termini – “investment” and “capital placement’s” usage in the economical literature.
Investments are placement of funds into the main and circulation capital for the purpose of getting profit. “Investments in material assets – are the placements of funds into the mobile and real estate (land, buildings, furniture and so on). Investments in financial assets are the placements of funds into the securities bank accounts and other financial instruments”.

We don’t meet with the termini “investments” in the earlier economical dictionary, but we meet the combined termini “investment policy” – the union of the industrial decisions, which guarantee main directions of the capital investments, the activities of their concentration in the determinant suburbs, on which the reaching of planned rates of development of the society production is depended, balancing and effectiveness, getting more and more production and profit of the national income for every lost Ruble”. For today, in the most actual definitions, the capital investments are bounded only by financial means, when not only financial, but also the investment of natural, material-technical and informational resources takes place. Labour resources take an actual place in the investment process. They themselves fulfill this or that investment process.

A positive side of the discussed definitions is that they connect investment policy and capital placements (investments):

- economical development according to the key directions to the concentration;

- providing high rates of economical growth;

- raising an economical effectiveness, which is expressed:

a) by growing the throw off of the production and national income for every lost Ruble;

b) by fulfilling the branch structure of the investments;

c) by improving their technological structure;

d) by optimization of their further production structure.

Compared with such definition of the investments (capital placement) the definition of investments in the dictionary attaching the “Economics” seems to be unimproved: “investments – the expenses of gathering production and industrial means and increasing material reserve”. In this definition current expenses (production expenses) are mixed with the investment (capital) expense. Also, not the investment expenses but (though the investments are followed by the appropriate expenses) exactly advancing. It differs from the expenses by that the means (means) are put by returning the advanced values, also, under the conditions of growth, to which the concept-advanced capital is corresponding. the advancing may be realized in the money, natural-material and informational forms.

Except the termini “investments”, there are two more termini related with the investment. They are shown below.

“Human capital investment” – any activity provided for rising the workers labour productivity (in the way of growing their qualification and developing their abilities); at the expenses of improving the workers’ education, health and raising the mobility of the working forces”. It is very useful to use the mentioned termini, though it needs one correction: the human capital investments do not concern only workers, but also the servants, representatives of every kind of labour.
“Investment commodity, capital goods – a capital.”

In the official manuals of political economy of the reformation time the capital investments are discussed as “expenses for creating new main funds and widening, reconstruction and renewing the active ones”. In this definition the investments (capital placements) during separation of the forms (types) of further production of the main funds are bounded only by main funds (without increases of the circulation funds and insurance reserves):

a) creating new ones;

b) widening;

c) reconstruction;

d) renewing.

Also, the concept of the industrial gathering appears, at the expenses of widening of basic, circulation funds and also insurance reserves takes place”.

You’ll meet below the definitions of investments from “the course of economy”: the investments are called “placements of fund into the basic capital (basic means of production), reserves, also other economical objects and processes, which request long-termed influxing of material and cash means. “According to the division of capital into physical and money forms, the investments too must be divided into material and cash investments”.

They apportion investment commodity, to which belong industrial and nonindustrial building objects, vehicles purposed for changing or widened technical park and the furniture, increasing reserves and others.

“They call the total investments of production an investment product, which is directed towards keeping and increasing the basic capital (basic means) and reserve. Total investments consist of two parts. One of them is called the depreciation; it represents important investment resources for compensation of renewal till the level of before industrial usage, wearing out and repairing of the basic means. Second consisting part of the total investments is represented by net investments – capital investments for the purpose of increasing basic means”. Depreciation is not a compensation resource of wearing the basic funds out, but it is the purposeful financial source of such resources.
Human capital investment is “a specific kind of investments, mostly in education and health protection”.

“Real investments are the investments in the economical branches and also, they are kinds of economical activities, which provide influxing the increases of real capital, that is increasing material values of the industrial means”. We can agree with such definition with one specification that material and nonmaterial values too belong to the real capital (wealth), consequently science-researching experimental-construction results, various information, education of he workers and others. Such service as organization of the excitable games, also the service of redistribution social wealth from one private person to another (except charity).

“Financial investments represent placement of funds into the shares, obligations, promissory notes, other securities and instruments. Such investments, of course, do not give increases of the real material capital, but they help getting profit, consequently at the expenses of changing the course of the securities in the time of speculation, or distinguishing the course in different places of sell and purchasing”. We share wholly such definition, hence it follows that financial investments (if it is not followed by real investments as a result) do not increase real material wealth and real nonmaterial wealth. According to this context, the expression below is very important: “we must distinguish financial investments, which represent placement of the funds in the ways of selling and purchasing the securities for the purpose of getting profit and financial investments, which become cash and real, moved to real physical capital.”

In the “economical course” quoted before long and short-termed investments are separated. Recognizing the existence of the bounds between them, the authors ascribe short-termed investments to “one month or more” investments. If we get such conditioned criteria, that we can call the investments which overcome the terms of some months, long-termed ones, which is very doubtful and we don’t agree with it. A long-termed character of the fund placement is a significant feature of the investments (short-term doesn’t combine with the concept of investments). Principally, it would be better to point out quick compensative, middle termed compensative and long-termed compensative investments:

- less then 6 months – quick compensative;

- from 6 months up to the year and a half – middle termed compensative;

- more then the year and a half – long termed compensative.

We stopped at the definition of the investments in the capital work “economical course” for the special purpose, as, in it the author tried to discuss the concept of investments systemically and quite completely, herewith the book is published just now.

We’ll return to the discussion the definition economical category of “investments” in different publications in the following chapter. The definitions given here are quite enough for having a notion of the level of lighting up the given category in the economical literature.
What conclusions may be made according the definition of the mentioned economical category in the published works, except the made notions and specifications?

There is quite deeply, concretely and thoroughly defined the concept of “investments”, different definitions in the economical literature; but mostly in every works about the investments discussed by us until now, there is not opened the essence of investments as an economical category. In every monograph , even if it has a title investment, as an economical category , there is given only the definition, concept of investments. But, as the Academician Vasil Chantladze explains, “a concept is a discussion, which proves something about the distinguishing feature of the researched object. A concept out of much essential characteristic features represents only one, and essential in it is only – definition”.

But the categories are much wider; it is “a key, the most fundamental concept of every science”. Economical categories theoretically represent real, objectively existed productive relations. A category is the defining of occasions of existed characters, connections, relations of the objective world. Generally, any educational process is fulfilled by the categories, which give opportunities for dividing the processes and occasions semantically, for expressing the definitions of a subject and realize their specific peculiarities and economical relations of a material world.
Our goal is exactly to substantiate investments – as an economical category and also, as a financial category in the narrow understanding.

Here we apply for another manual thesis made by the academician Vasil Chantladze: “every financial relation is an economical one and every financial category is and economical one, but not every economical relation and economical category is financial relation and financial category”.
In the process of defining the investments, it is important to take in mind the sides of resources, expenses and incomes, because investment, from one side, is the result of the manufacture’s activity, and, from another one, – a part of income, which, in this case, is not used for usage.
Another occasion: it is advisable to discuss investments in two aspects: as a category of reserve and flow, which will reflect exactly the connection between “placement of funds” and “investments”.