The 21st century is fast growing and there is a pressing need for everyone to take to lucrative ventures. As a result, many people have considered investing in a kind of business or venture. Nevertheless, investing in a business or venture can be highly risky and challenging.
Sometimes, as an investor, if care is not taken, you become vulnerable to loss even to the point of losing all your invested capital. This experience can be quite challenging for a lot of people especially with long term investments. This is the reason why it is important for you to get yourself acquainted with the necessary knowledge and skills before you start any investment.
Before you think of going into that investment you desire, some tips are shared in this post. These tips and knowledge were provided by Real Estate Investor Winston Deloney during an interview with him.
He shared what he wished he knew before he ventured into real estate investing. Definitely, learning from the horse’s mouth will pitch you to a better position of succeeding in your investment. Do well to read through to avoid getting yourself into an investment that will not pay off in the end.
1. Adequate research
While starting off with investment, I honestly wish I was patient enough to make adequate research about what I wanted to engage in. I later discovered, the hard way of course, that whatever business or venture that I intend to engage in, it is vital that I conduct my own research to see the pros and cons of the business. As a real estate investor, I have learnt that I need to weigh the projected profits and loss, and if I am satisfied with it, I can go ahead and invest in it.
Other things I wish I knew was to make research about the competitiveness of the business, its financial strategies and schemes, its descriptions, the market analysis as well as tactics. These, I believe would have accelerated my growth as an investor.
2. Consultations with experts
Truthfully, I was all hyped about real estate investing that I thought I could do everything on my own. I didn’t really see the need to consult certain individuals who have engaged in the business of investing before now, and have the knowledge, experience as well as information about the investment.
It was later I discovered that these individuals could have helped me with their knowledge about the business and help me set my right foot forward at an early stage. This would have helped me to make easy headways in the venture.
3. Relationship with people/customers
If I knew, I would have tried as much as possible to gather and build customers for my investment. Even if it was gathering at least 5 to 8 potential customers who will embrace the idea and take active part in it, that would have helped my investment career.
It would have also helped me to source my capital and maximize my profit quickly. I would have also been able to gather some relevant information from these individuals as regards the investment.
4. Familiarization with the structure and mode of the business
Looking back now, my investment was more like trial and error. I failed to do many things like a background check about the structure of the business I wanted to invest in. I could have paid keen attention to the professionalism of the CEO of the business as well as the managers, but I didn’t give much thought to that.
It is now that I understand that with a good and deep understanding of the structure of the business, I would have been able to evaluate the odds as regards the success of my investment.
5. Value and importance of patience
I was a hot blood when I started investing; I wanted to make an investment and just get my ROI in a couple of months or weeks if possible. I forgot patience is an invaluable virtue that I needed to cultivate as an investor.
I later learnt that the returns and profits on the business may not come as quickly as I wanted. It’s like a “get slow rich scheme.” So, I needed to give the process some time to yield. I couldn’t have been happier for this decision.
As far as investing in businesses is concerned, those are the things I wish I knew. If I had all this at the start of my career, the journey would have been easier. If you are venturing into investment now, you can learn from my experience and avoid the mistakes I made.
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