Things to consider before investing in someone else’s business

[Augusta]

If you have an opportunity to invest in another person business, it might just be the best way of making your money works for you. It isn’t a bad idea at all but you must be sure that the business is worth you investing in it. You need to consider the following:

• The duration of the business: you can invest in a new business but be sure the owner is a serious person
• Check the assets of the business, if you can sell to get your money back
• Is the agreement binding, i.e. everything is on white and black (written)
• Can the business actually pay the percentage commission on your investment?
• Is the business viable? Can it generate the needed profit?

What’s your thought?

 

[Chibson]

Of course nobody will want to put his money on a business that definitely does not have a clear purpose and future. before you invest in any business you need to access the duration of the business and its growth pattern. When you realise that the business is really doing well and the people in charge of the business are visionary then you will be tempted to invest your money.

 

[Augusta]

Of course nobody will want to put his money on a business that definitely does not have a clear purpose and future. before you invest in any business you need to access the duration of the business and its growth pattern. When you realise that the business is really doing well and the people in charge of the business are visionary then you will be tempted to invest your money.

Well Stated, these are the points that should be noted by investors into other businesses. It is good to invest because it isn't always about working for your money, there is nothing with allowing your money work for you in another person business. But caution needs to be applied to avoid dumping money in a fruitless venture

 

[sincerem]

I don't even see myself investing in someone else's business even my friend's own. I just love running my own and maintaining it for long to earn financial rewards around it long time. Depending on others thought and establishment to earn mine isn't feasible, cos it will be a risk when the business fails halfway bit with mine, I can earn long time even if it isn't making much at the moment.

 

[Augusta]

Well, different strokes for different folks some people know they can run a business so they prefer investing in others to make money. But if you have the opportunity in investing in another business with the right commission there is nothing wrong with taking up the challenge but you must apply caution

 

[Josemendez]

Investing in other people's business is something that one takes careful measures before he can be able to put money into the business. Secondly , there is usually need to see through the business balance sheet to see how successful it has been .
Then shirt term investment is normally ideal .

 

[Augusta]

Investing in other people's business is something that one takes careful measures before he can be able to put money into the business. Secondly , there is usually need to see through the business balance sheet to see how successful it has been .
Then shirt term investment is normally ideal .

Yeah one ways of knowing how productive a business has been over a period of time is through the balance sheet. So it is always good to look at the balance sheet to be sure you are not dumping your money on an ailing business that is on a verge of collapsing

 

[Alexandoy]

I will only invest in a business when I personally know the business owner or the founder (in case of a corporation it is the chairman). There was once an offer for me to join a corporation which was owned by a relative. But I am not comfortable with the business operation so I declined to join as an investor.

 

[Augusta]

I will only invest in a business when I personally know the business owner or the founder (in case of a corporation it is the chairman). There was once an offer for me to join a corporation which was owned by a relative. But I am not comfortable with the business operation so I declined to join as an investor.

You did the right thing sometimes it is good to go with our instincts when once something doesn't sit right it is good to let it go. Investing in a business needs one very comfortable with the decision, when once you notice that your money might be going down the drain then you back off.

 

[funmi]

To me, investing in another person's business is not wise at all. Since the person knows that he or she is the owner, he may not really see you as a partner no matter how much you invest in the business. If the business grows to some certain extent or level, he may pay you off so that he can the sole owner of the business. I will advice anybody who is thinking of investing in another person business not to do so but use the money start up his own business no matter how small.

 

[Mika]

There are two ways to invest in a business owned by someone else. One, you are just an investor and you do not get involved in day to day operation, but you bear the profit and loss. Two, you invest in the business, you take a position in the company and get involved in the business operation. I think second option s less risky.

 

[Setho]

One very important thing that you should always check before you invest in any business is the legality part. You should ensure that all your agreements are being documented very well and kept with a lawyer. You should also ensure that the business has a very good model and is a business that has a high potential for growth.

 

[Sotherefore]

I don't really know of others , but for me I don't have the time to invest in another person's business except maybe it is a type of investment that is being sponsored by the government or government is the one controlling . A situation in which I have to invest in other people's business I will not likely have the interest except it is absolutely necessary.

I rather invest my money in cryptocurrency which I am very sure will be able to give me a reasonable profit on my investment if I am considering to invest for long-term .

The reason why I may be so sceptical to invest or commit my money in any private business organisation is because of the trust issues of most people especially here in Africa, private investment can collapse at any time and you may not have the opportunity to get back the money you have invested in such . That is why I said if it is controlled by the government then I am very sure of getting back my profit after a certain period of time.

The little money I have now I'm just considering investing them in cryptocurrency and probably using it to learn a skill.

 

[TOZZIBLINKZ]

Therethere are some willing philanthropist and investors that are willing to invest in a particular person's business especially in most developed and developing country . but this one's usually have the intention to invest in property business especially when the business is promising and has enough potential to make profit in the future . Sometimes not only philanthropist and investors and the one investing in other people's business even private individuals can invest in other people business so as to share the profits at the end of the day , week , or month when made .

One of the factors to consider before investing in another person's business is to consider the activity of the entrepreneur who possibly will be the owner of the business . One of his or her activity to consider is how effective is he to takes risks , has his or her already taken risk being effective , finally you must endeavour to check the book records or financial record books of the business in other to compare it losses and profit . In the business financial book if the losses of the business is more than its profit it will not be wise to invest in such business and vice versa .

 

[Kendy]

I agree that there are certain things to be considered before investing into someone else business. We are all aware of so many people who have devised the means of having people invest in their business and in the end, they do not keep to the end of their bargain. One of the best ways of funding a business after using one's personal funds is by opting for investors. Due to the high rate of scam, I can never invest in anyone's business no matter the positivity and profitability. Recently, in my country, the internet was on fire because a popular group of chinmark company had defrauded more than ten billions and boycotted to another country. The official social media handle was restricted from allowing users of the social media to comment and from my past experience, this the same trend these set of scammers use.


They dress in suits, snap fancy pictures, pay peanuts to people to sing their praises, engage in religious activities so that they can capture the minds of their audience and boom! When their target is achieved, they bring out their true personality by travelling abroad, and they would ask for more time to return their capital and returns in investment but we all know it is their game plan, leaving the people who invested to their Fate.