Money is a powerful tool if you know how to use it. And this implementation has a vital role in the business environment. There are a lot of characteristics of money, but economic science determines six basic properties. In this article, we will try to explain them and their connection with successful entrepreneurs.
Six characteristics of money for business success
Money is any item or verifiable record which is accepted as payment or repayment in a certain country or socio-economic environment. We have to admit that money appears to be a historical phenomenon. In fact, such a concept shouldn’t exist at all. And money exists only because people want it in their lives. Not without a reason, as we see the indisputable convenience of money usage.
There are six basic characteristics of money, accepted by different economic schools worldwide:
- Limited supply
Let’s look at each of these more closely.
Portability of money
In our context, portability means that money should be carried and transported easily. In the 21st century, this quality takes on special significance because of the mass distribution of electronic payment systems. So all modern entrepreneurs must be able to work with such systems and learn to search for the most profitable propositions for saving and transferring their money. This isn’t an easy task, considering the high competition in the field of E-money.
READ ALSO: Branches of economics and their meanings
General acceptability of money
This quality is usually not included on the list of money characteristics. But it also plays a huge part in the ability of correct money disposal in business. So, acceptability means that the form of currency that you’re achieving from trading your goods (services), must be generally distributed. You can’t accept a currency that cannot be put into circulation later.
Durability of money
Durability is one of the most important qualities of money. It means money must be a thing of continued use. For the paper money, it also means that it must be resistance to wear and tear for a long time. But in a modern business environment, you can’t always rely on cash, so you have to look for online ways of transacting with your money.
Divisibility of money
For most people, this characteristic means that money must be easily separated to allow the owner buy different products. However, for businessmen, divisibility has a slightly different meaning. For example, you are running your own shop. Make sure that you have all sorts of popular goods with different denominations. Expand your assortment and provide products for every single category of customers.
Uniformity of money
Uniformity means that all versions of the same denomination of currency must have the same purchasing power. For example, an old $2 bill will still buy $2 worth of goods or services nowadays. For Nigerian entrepreneurs, it also has another meaning. If you have a deal with international currency, don’t forget about the exchange rate. Sometimes you can even make some extra money on it.
Limited supply of money
This characteristic means that restrictions on the amount of money in circulation ensure that values remain relatively constant for the currency. Similarly, businessmen have to provide goods and services in short supply. This approach ensures sales in different sections of your assortment. Limited editions of goods would always be more valuable for people.
If you learn how to use your money properly, some new paths will surely be open for you. Even if you are not an entrepreneur, you still have to be well-informed about money operations. We hope that our advice would be useful to you.
READ ALSO: Benefits of ICT in education sector