Business Investment Opportunity – A 6 Point Check List
As an investor, business opportunities are an excellent place to produce maximum yields much superior to managed funds or the stock exchange. Many investors have a fantastic eye for the company investment opportunity and for that reason make some startling returns on their cash with little more effort than signing up the test when the due diligence is completed. Below is a set of things to search for in an upstart company that is indications of a fantastic investment.
1) The Pay Off
I examine the upside first because that’s what I want to know first before analyzing the dangers. If there isn’t much upside potential because of a saturated market or what might be the reason, there’s absolutely not any need to waste additional effort assessing the enterprise. Believe it or not, I need a return of 10 times or more yearly. That’s a 1000% return and I will let you know why and how I do this until you fall off your seat.
I spend small amounts and seldom over $10,000 that is little change to me and especially secure because I know I will inevitably make mistakes and not every decision I invest in will pay off and I know I will lose my high-risk investment maybe two times out of 10.
2) The Danger
The threat is a clear consideration and the downside was satisfactorily cared for by my approach outlined above. I really don’t want to get rid of a single cent, but I am ready to play aggressively since I use small amounts and take for high returns in almost any business investment opportunity.
3) The Management
Will they be around in a year? What type of people are they and furthermore, the decision makers, what is their past track records?
4) Current Assets of the Business
If the company has resources, this may be a fantastic way to secure your investment funds. You might try negotiating hard on your portion beef and give back a couple percentage points back to the investment in exchange for a few gears of value or other tangible assets. This manner your investment could be salvaged if things go south of the border.
5) Exploring the Industry
Aside from taking a micro look at the company, you’re getting ready to invest in you might want to return and have a look at the big picture. What’s the future of the market, what types of challenges does the industry face and what are the future prospects? This is for the long-term investment but should also be looked at for short turnaround investments (under 5 years)
6) Speed of Returns
Making 1000% in under a year is much better than making the identical amount over 5 decades. The speed of yields is exactly what investment is all about so never be absent about being competitive on your returns, as soon as a startup is desperate for money, they generally know that money and the purpose for this will make them incredible money, otherwise, they would not risk it themselves. To be competitive, often they will study your deal as a method of finding the money quickly and will often provide you all of the available profits for the first year so that they could then continue without you once you’ve been paid. Get as much as possible!