Understanding Investing
#EpisodeFour
To identify good investment is HARD WORK. Some people even delegate it to their investment consultants and advisers.
If we get good responses, we can invite our own consultant to come have a live session here with us, but responses are not good enough yet.
Anyway, below are things to consider as an investor:
1. What is the business into in very clear terms?
Every business is ultimately into the exchange of goods and services for money. If you don't get it clearly, please don't get involved.
2. How much exactly is the business trying to raise as capital?
If there is no fixed amount and the business keeps receiving monies from investors endlessly, it is a red flag.
3. Who are the promoters of the business?
Beyond social media packaging, lookout for the antecedents. How long have they been into the business? What's their reputation outside their call for investments?
4. What's the mitigation for key man risk?
If anything happens to the key promoter or founder, what happens to your monies? Who else has access to company funds? What's the management structure in place? Is there a management board that can even fire the CEO if that becomes critical to save the business?
5. What is the ROI?
If it is too high and within a short time frame, red flag. How many investors are onboard, if the numbers are high with a high ROI, danger.
6. What's the compliance record?
If they are seeking funds from the public and in high numbers, they must be regulated for the protection of public funds. It is different from what a friends and associates come together in fee numbers to do quietly.
7. What is your own motivation and drive?
We all have traits of greed and we must be intentional to keep it in check. Never invest out of desperation, you will get it wrong most of the time. The key attribute of smart investment is long term patience. It's a waiting game, haste makes waste.
8. Are you daring?
If you have an abnormal appetite for risk, then master how to opt out early enough. We don't recommend abnormal risk appetite.
9. How are the promoters and founders spending money?
Convenience and comfort isn't bad to aid productivity and for stress management, but when they are spending ostentatiously on things they can ordinarily not afford based on their income alone, and within a short time frame, OPT OUT FAST!
10. Do due diligence
After all said and done, still do your due diligence to confirm the claims. Smart answers will be provided but do your background checks. They say they supply three billion naira worth of garri to a market in Kano, get someone to go ask around in that market in Kano.
11. Pay attention to the numbers
If a state consumes about 1 billion naira worth of garri daily and only garri dealer claims to be supplying 800k worth of garri to that same state alone, there is a problem there. While there may not be exact statistics to use as benchmark, you can create safe estimates to compare with the numbers being thrown around.
This brings us to the end of this series.
Got more to add? Leave a comment.
Got a question? Leave a comment.
You can share this and invite others to the channel.
t.me/dobusinessbetter
Let's help each other become smarter with out investment choices.
This is a general guide, tweaks will be needed in each unique case.
Cheers from all of us at:
Mapemond Brand Consulting
#EpisodeFour
To identify good investment is HARD WORK. Some people even delegate it to their investment consultants and advisers.
If we get good responses, we can invite our own consultant to come have a live session here with us, but responses are not good enough yet.
Anyway, below are things to consider as an investor:
1. What is the business into in very clear terms?
Every business is ultimately into the exchange of goods and services for money. If you don't get it clearly, please don't get involved.
2. How much exactly is the business trying to raise as capital?
If there is no fixed amount and the business keeps receiving monies from investors endlessly, it is a red flag.
3. Who are the promoters of the business?
Beyond social media packaging, lookout for the antecedents. How long have they been into the business? What's their reputation outside their call for investments?
4. What's the mitigation for key man risk?
If anything happens to the key promoter or founder, what happens to your monies? Who else has access to company funds? What's the management structure in place? Is there a management board that can even fire the CEO if that becomes critical to save the business?
5. What is the ROI?
If it is too high and within a short time frame, red flag. How many investors are onboard, if the numbers are high with a high ROI, danger.
6. What's the compliance record?
If they are seeking funds from the public and in high numbers, they must be regulated for the protection of public funds. It is different from what a friends and associates come together in fee numbers to do quietly.
7. What is your own motivation and drive?
We all have traits of greed and we must be intentional to keep it in check. Never invest out of desperation, you will get it wrong most of the time. The key attribute of smart investment is long term patience. It's a waiting game, haste makes waste.
8. Are you daring?
If you have an abnormal appetite for risk, then master how to opt out early enough. We don't recommend abnormal risk appetite.
9. How are the promoters and founders spending money?
Convenience and comfort isn't bad to aid productivity and for stress management, but when they are spending ostentatiously on things they can ordinarily not afford based on their income alone, and within a short time frame, OPT OUT FAST!
10. Do due diligence
After all said and done, still do your due diligence to confirm the claims. Smart answers will be provided but do your background checks. They say they supply three billion naira worth of garri to a market in Kano, get someone to go ask around in that market in Kano.
11. Pay attention to the numbers
If a state consumes about 1 billion naira worth of garri daily and only garri dealer claims to be supplying 800k worth of garri to that same state alone, there is a problem there. While there may not be exact statistics to use as benchmark, you can create safe estimates to compare with the numbers being thrown around.
This brings us to the end of this series.
Got more to add? Leave a comment.
Got a question? Leave a comment.
You can share this and invite others to the channel.
t.me/dobusinessbetter
Let's help each other become smarter with out investment choices.
This is a general guide, tweaks will be needed in each unique case.
Cheers from all of us at:
Mapemond Brand Consulting
Telegram
DO BUSINESS BETTER
This group is powered by Mapemond Limited where business owners and leaders in organizations can learn and exchange ideas on how to build solid brands and profitable businesses.
Understanding Investing 4
#EpisodeFour
To identify good investment is HARD WORK. Some people even delegate it to their investment consultants and advisers.
If we get good responses, we can invite our own consultant to come have a live session here with us, but responses are not good enough yet.
Anyway, below are things to consider as an investor:
1. What is the business into in very clear terms?
Every business is ultimately into the exchange of goods and services for money. If you don't get it clearly, please don't get involved.
2. How much exactly is the business trying to raise as capital?
If there is no fixed amount and the business keeps receiving monies from investors endlessly, it is a red flag.
3. Who are the promoters of the business?
Beyond social media packaging, look out for the antecedents. How long have they been in the business? What's their reputation outside their call for investments?
4. What's the mitigation for key man risk?
If anything happens to the key promoter or founder, what happens to your monies? Who else has access to company funds? What's the management structure in place? Is there a management board that can even fire the CEO if that becomes critical to save the business?
5. What is the ROI?
If it is too high and within a short time frame, red flag. How many investors are onboard, if the numbers are high with a high ROI, danger.
6. What's the compliance record?
If they are seeking funds from the public and in high numbers, they must be regulated for the protection of public funds. It is different from what friends and associates come together in a few numbers to do quietly.
7. What is your own motivation and drive?
We all have traits of greed and we must be intentional to keep it in check. Never invest out of desperation, you will get it wrong most of the time. The key attribute of smart investment is long-term patience. It's a waiting game, haste makes waste.
8. Are you daring?
If you have an abnormal appetite for risk, then master how to opt out early enough. We don't recommend abnormal risk appetite.
9. How are the promoters and founders spending money?
Convenience and comfort aren't bad to aid productivity and stress management, but when they are spending ostentatiously on things they can ordinarily not afford based on their income alone, and within a short time frame, OPT-OUT FAST!
10. Do due diligence
After all said and done, still do your due diligence to confirm the claims. Smart answers will be provided but do your background checks. They say they supply three billion naira worth of garri to a market in Kano, get someone to go ask around in that market in Kano.
11. Pay attention to the numbers
If a state consumes about 1 billion naira worth of garri daily and a garri dealer claims to be supplying 800k worth of garri to that same state alone, there is a problem there. While there may not be exact statistics to use as a benchmark, you can create safe estimates to compare with the numbers being thrown around.
This brings us to the end of this series.
Got more to add? Leave a comment.
Got a question? Leave a comment.
You can share this and invite others to the channel.
t.me/dobusinessbetter
Let's help each other become smarter without investment choices.
This is a general guide, tweaks will be needed in each unique case.
Cheers from all of us at:
Mapemond Brand Consulting
#EpisodeFour
To identify good investment is HARD WORK. Some people even delegate it to their investment consultants and advisers.
If we get good responses, we can invite our own consultant to come have a live session here with us, but responses are not good enough yet.
Anyway, below are things to consider as an investor:
1. What is the business into in very clear terms?
Every business is ultimately into the exchange of goods and services for money. If you don't get it clearly, please don't get involved.
2. How much exactly is the business trying to raise as capital?
If there is no fixed amount and the business keeps receiving monies from investors endlessly, it is a red flag.
3. Who are the promoters of the business?
Beyond social media packaging, look out for the antecedents. How long have they been in the business? What's their reputation outside their call for investments?
4. What's the mitigation for key man risk?
If anything happens to the key promoter or founder, what happens to your monies? Who else has access to company funds? What's the management structure in place? Is there a management board that can even fire the CEO if that becomes critical to save the business?
5. What is the ROI?
If it is too high and within a short time frame, red flag. How many investors are onboard, if the numbers are high with a high ROI, danger.
6. What's the compliance record?
If they are seeking funds from the public and in high numbers, they must be regulated for the protection of public funds. It is different from what friends and associates come together in a few numbers to do quietly.
7. What is your own motivation and drive?
We all have traits of greed and we must be intentional to keep it in check. Never invest out of desperation, you will get it wrong most of the time. The key attribute of smart investment is long-term patience. It's a waiting game, haste makes waste.
8. Are you daring?
If you have an abnormal appetite for risk, then master how to opt out early enough. We don't recommend abnormal risk appetite.
9. How are the promoters and founders spending money?
Convenience and comfort aren't bad to aid productivity and stress management, but when they are spending ostentatiously on things they can ordinarily not afford based on their income alone, and within a short time frame, OPT-OUT FAST!
10. Do due diligence
After all said and done, still do your due diligence to confirm the claims. Smart answers will be provided but do your background checks. They say they supply three billion naira worth of garri to a market in Kano, get someone to go ask around in that market in Kano.
11. Pay attention to the numbers
If a state consumes about 1 billion naira worth of garri daily and a garri dealer claims to be supplying 800k worth of garri to that same state alone, there is a problem there. While there may not be exact statistics to use as a benchmark, you can create safe estimates to compare with the numbers being thrown around.
This brings us to the end of this series.
Got more to add? Leave a comment.
Got a question? Leave a comment.
You can share this and invite others to the channel.
t.me/dobusinessbetter
Let's help each other become smarter without investment choices.
This is a general guide, tweaks will be needed in each unique case.
Cheers from all of us at:
Mapemond Brand Consulting
Telegram
DO BUSINESS BETTER
This group is powered by Mapemond Limited where business owners and leaders in organizations can learn and exchange ideas on how to build solid brands and profitable businesses.