Investing in business can be a significant step in diversifying your investment portfolio. Entrepreneurs make money in this way all the time, as we see on our TV sets through programmes like the dragons den. But if you’re not Duncan ballot I’m, or Peter Jones had do you ensure that you are asking the right investment questions that will maximise your chances of success and possibly most importantly your return?
During this segment I share some of the key questions which should be shaping your decision, such hours: –
1. Is it a start up in the true sense of a definition? Or could you simply be investing in a friend and colleague rather than a business?
2. Do the founders have the right experience, mind-set, strategy and approach? Are they putting forward a realistic proposition that they fully understand or are there gaps?
3. He’s attraction in the business and idea?
4. Is there a market and if so how big is it?
5. What of the barriers to entry to that market and how will they be overcome?
6. How much is a start-up / business worth, and how can you worked that out?
Take a listen and see if it helps you to form the right questions when you’re planning on making your next business investment.