to invest and not to invest?

[jabez_rmc]

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hi mga istoryans....sa mga interesado ug negosyo, it will always come to a point that someone will approach you to invest in their business, you will become a stockholder, specifically financial partner.

now the question is what will be your basis to decide, what will be the things you will be asking to the business proponent to help you convince and answer the question to invest or not to invest:


the challenge here is to answer an intelligient answer , the purpose of this thread is to help people and be guided in making right decisions in investing...please dont crap the thread by posting ms universe answers (if you know what i mean), or posting without any intention of helping or clarifying.

for the sake of clarity, post first your questions and then you can go on answering in paragraph statements:

e.g.

1. whats the business?
2. who are the owners?
3. whats the marketing plan?
4. etc..
5. etc...


etc etc etc...

[j.alob]

ako sugod be.. ma ngutana diba.? so help me...

i want to invest sa piso piso pc unsaon ni siya.? naa nako nakita nga mo gama sa coin operated sa nice nga presyo.. ilang kung tudloan unsa kaayo ang wirings (advantage sa akoa,)

wala pay coin operated sa amoa...

sa akong huna huna mo gana ni nga negosyo.. basin naa moy ma dugang pa nga idea diha unsaon ni.. or suggestions ba kaha.

salamat.

[cirext]

These would be my guiding questions:

-What is the product?
-Of all the possible options, why choose this?
-What is the target market?
-How dense is the population of the market?
-Is the population enough for the business to survive in long-term?
-What is the existing competition?
-Rate of return of investment?
-how will the business cope up in case Plan A won't work?
-What are other possible risks involved if ill invest?

[jabez_rmc]

cirext did a good job here..thanks bai for sharing:

now lets develop this into a checklist so that this can be beneficial for everyone:

lets classify the question to ff:

1. Product /Service
-What is the product? c/o cirext

2. Operations
-how will the business cope up in case Plan A won't work? c/o cirext

3. Marketing
-What is the target market? c/o cirext
-How dense is the population of the market? c/o cirext
-Is the population enough for the business to survive in long-term? c/o cirext
-What is the existing competition? c/o cirext

4. Financial
-Rate of return of investment? c/o cirext
-What are other possible risks involved if ill invest c/o cirext

5. Community Impact


more ideas mga peps.....

i will continue to manage this thread for all to benefit

[terces]

1) Why are you starting up a business?

Setting up a business is a time intensive task - you need to be dedicated and focused in order to be successful. The rewards of starting up your own business can be great, but think carefully if you have the attributes and right sort of personality to cope with going it alone. What is your goal for starting a business? Is it financial reward or the freedom that comes from being your own boss? What is your motivation?

2) Skills
Identify your skills and particularly your weaknesses. Be honest and ask others for input. If you are less hot in certain areas, outsource these areas of the business or seek professional advice when you need it. Spend your time doing what you are good at.

3) Company Structure
You will need to decide what business structure you will trade under (sole trader, limited company, or partnership) and what obligations and responsibilities you will have as the owner of a new business.

4) Funding
Even if you have the best idea in the world, you are unlikely to make a killing instantly. Make sure you have enough money to live on for 6 to 12 months before committing yourself to self-employment. Alternatives include approaching the bank or an investor. Both these options will require a solid business plan.

5) Competition
Thoroughly research all your competitors. Identify weaknesses they may have and try to ensure your product or service is better. Competition is a very healthy thing, but you need to do constant research and never be complacent.

6) Marketplace
Make sure that there is a market for your product or service. Do plenty of market research and take notice of what your potential customers tell you. You can get very useful feedback that will improve your product or service.

7) Marketing
How are you going to reach you target market? The best product in the world will fail if it has no route to market. Think about your ideal customer - what do they do? What do they read? Where do they go? If you can answer these questions you will begin to identify the best places to advertise.

[cirext]

im a bit curious on how this thread will go on...
i think i understand d purpose of this thread.

For my company, these are the dept's that i want to have:
1. Management & Operations
2. Marketing
3. Sales
4. Finance & Investments
4. Technical
5. Accounting
6. Continuous Improvement / Research & Development
7. Client Care Section

i have most of these pero nindot jud unta ug departmentalized jud...
maybe in the future if God permits.

[jabez_rmc]

ang purpose ra jud ani bro...provide mga tao a guide to invest in a particular business or not..

also its a double edge sword coz it would help people understand what is needed to start a business..a.k.a. checklist bah...

okies..more contributors guyz..



1. Product /Service
-What is the product? c/o cirext

2. Operations
-how will the business cope up in case Plan A won't work? c/o cirext

3. Marketing
-What is the target market? c/o cirext
-How dense is the population of the market? c/o cirext
-Is the population enough for the business to survive in long-term? c/o cirext
-What is the existing competition? c/o cirext

4. Financial
-Rate of return of investment? c/o cirext
-What are other possible risks involved if ill invest c/o cirext
-whats the business structure (single/partnership/corporation) c/o terces

5. Community Impact

[terces]

There are basically three types of business structures (or forms of ownerships) to start with, and if you are looking to commence a business, you need to study all of them in detail as they are not just different methods to manage a business. Business structure actually plays an important role in many ways. For example, cost of starting and then maintaining a business varies with different structures; then you have this very important objective of minimizing tax payable, another decisive perspective can be the liability factor. You can change the structure in future (e.g. getting into a partnership from operating as a sole proprietor) but it's better to start from the right one, instead of going through the change process later on.


Sole Proprietorship:
The most basic form of small business, where one man starts, manages and owns a business. There's no or minimum start up costs involved, you are the sole possessor of your business and all its assets. However, this sole ownership comes with unlimited liability, which means even your personal assets are at risk in case something goes wrong and a suit is filed against your business. As a sole proprietor, you are responsible to pay income tax on your profits. Apart from the unlimited liability part, sole proprietorship is the most convenient way to start a small business, for example consultancy services, real estate agent, retail store, etc.

Partnership or Joint Venture:
Another very simple form of business structure is known as partnership; in which two or more persons join hands to establish and manage the business. Profit, loss and liabilities are equally divided between all partners (or as per the agreement). Taxation liabilities are same as sole proprietorship, as partners are required to pay taxes on their share of profits, in individual capacity. Just like sole proprietorship, your personal assets are not protected as each partner carries unlimited liability (unless some of them are mentioned as limited partners in the agreement). Partnership can also result in some disputes or personality clashes if all members are fixed at running the business in their own way. Partnership helps two or more people to combine their finances and expertise to form a more competitive business when compared to sole proprietorship.

Limited Liability Company:
Limited Liability Company has characteristics of multiple business structures; it offers tax advantage similar to partnership, while precluding the unlimited liability. Limited Liability Company functions like corporations except that they are not required to offer company shares in stock exchange. Even though the cost of maintenance or establishing a Limited Liability Company is higher than partnerships or sole proprietorships, many smart entrepreneurs still prefer this business structure just because of limited liability clause.

[j.alob]

thank you guys...now i know

[terces]

thank you guys...now i know

You're Welcome bro..