You have money and you want to get them to work…
Well, one of the best options — investing savings in a promising business. This can be either the cause for which you take personally, or someone else’s promising startup.
The investment in your business: choosing a niche.
Mandatory at least the following requirements:
- your personal interest in the chosen field;
- the demand for goods and services that you would like to offer;
- moderate competition.
Outlining a niche you need to examine your competitors. Possibly pay a visit to them as a client, to assess their level.
Write a business plan, paying particular attention to the calculation of initial cost and return on investment.
Then you, presumably, need expert advice. For help or to turn to lawyers (for a fee), or to the regional business incubator.
Don’t be afraid of the registration process, in practice it is much easier than it seems.
Even before serious work will be very useful to study the program on stimulation of small business that operate in your area. It is not excluded that in them you will be able to receive financial support — it is unlikely to seem superfluous rated, even in the presence of their own savings.
The subtleties of investing in someone else’s business
We have already opened this topic in the article to Invest money in a startup and do not regret it.
Here make only a few additions.
Of any nascent company should pay attention to?
Most reliable firms that focus on basic consumer needs stores of household goods and food (provided that the outlet has a good location), hairdresser, etc. However, they can have quite a long payback period.
Faster sometimes “shoot” startups in the IT is online shopping, different services.
Investment in the website — when they are justified?
Also good signs for growth are:
- different delivery services;
- projects aimed at early development of children;
- fitness clubs and other institutions in the field of healthy lifestyle;
- organizations on repair of apartments or machinery etc.
The mass of options, to focus on specific needs, taking into account the situation in the region.
Financial participation in “young” project, much like the lottery. The investor, on the one hand, has a chance to make huge profits, on the other — simply to lose money.
To increase the probability of success, not too chase the new-fangled trends and do not mess with companies that operate on unclear basis.
If, say, the Internet projects are now in the trend, it does not mean that each of them is justified. Arguments in the style of “well, we can’t explain it to a man who has no highly specialized knowledge” that will probably feed you startups — a sure sign of bad business. Any coherent initiative to really explain on the fingers.
No less important than the idea as such, have the business acumen of entrepreneurs, their as its willingness to promote the project to the fiery speeches and bother with legal routine.