Based on the past experience of
successful entrepreneurs, you can likely benifit by starting your
own investment company. This may be done with very little effort,
yet with surprisingly good results.
First, tell one or two epople close
to you about plan, and then arrange a meeting time and place convenient
to other friends and relatives who may be also interested. Those
you invite to your first gathering may be approached with a letter
similar to the sample letter that follows. It is not recommended
that over fifteen or twenty people attend the first meeting.
The purpose of the first meeting
is to arouse interest, and to have each person contribute a minimum
of £10 to an investment pool with the ultimate objective
of creating an investment company. At the first or second meeting,
three temporary trustees may be elected to take charge of the
funds collected and to deposit them with a bank or savings company,
depending upon where the greatest rate is available.
Each member should contribute at
least £10 per month until such time as a solicitor can be
engaged to incorporate the members under the broadest possible
provisions allowed. This will enable you to buy and sell stocks,
bonds, commodities, mortgages etc., and also purchase, sell or
lease real estate for profit. You might also invest in viable,
up and coming businesses, or start several endevours or a business
that has an excellent chances of a good return on invested funds.
By doing some checking you may find that a solicitor will furnish
his legal services in exchange for stock in your new investment
company.
Once your organisation has accumulated
between £500 to £1000 you should call in a reliable
discount stockbroker to recommend growth stcoks. A discount broker
will save your group a large amount of money in brokerage fees.
As you increase your assets, reinvest the profit to develope a
sizeable portfolio for the group.
One of the most basic success secrets
in investing is to diversify, not only in stock purchases, but
also in different and unrelated fields such as real estate. When
your assets have grown to some extent, the members can begin to
consider a purchase of income producing real estate. Opportunities
in this field can be found in many areas, and company members
should be asked to submit likely properties for further investigation
as they find them. This could include flats, shopping centres,
multi family dwellings, and other prosperous looking businesses.
This way, a balance may be maintained to affect and / or offset
any one loss. It goes without saying, however, that each seperate
proposition will have been thoroughly investigated in advance
of the decision to invest for the company. In this field, you
will find that you will be reading and studying in the fascinating
world of investment and finance to your own and your company's
benifit.
In the early stages, officers and
directors are not generally paid for their services, since they
will not usually be required to spend much of their own time working
in the business other than attending regular monthly meetings.
Once the membership has grown and more activity is required, it
is wise to compensate them for their extra efforts for the group.
Be sure that your officers are alert and qualified inderviduals.
We have described how an investment
business group can be organised, and given you some details of
what it might do, but here is an exciting real life example of
how one such group prospered. The group started small, investing
small amounts over a period of two years, and ran their collective
principal of £7,000 into an asset value of £15,000.
Another group on five years developed a principal of £15,000
into assets well over £45,000. These assets were obtained
primarily through stock purchases and real estate investments.
The sample letter we mentioned earlier
should read as follows:
Dear xxx, I am in the process of starting an investment club.
Knowing that you have an active interest in increasing your income,
I felt you would be interested in an opportunity that could benifit
a group of participants in a solid investment venture. The first
meeting will be at my home on (date), at (time). If you are interested
and would like to learn the details, use the enclosed addressed
card to let me know, or call me at (telephone number). Thankyou,
and I hope to see you at the meeting. Yours sincerely, etc.
