Are you thinking of making some investments in order to further your business interests? Are you looking for somebody to invest in your company so that you can get the capital you need to expand? Understanding the world of investment can give you a big advantage in business, helping you to see the big picture rather than just looking at it deal by deal. It can help to protect you from exploitation and enable you to develop a strategic outlook so that you can make the most of every opportunity.
Looking to invest
If you’re looking for businesses to invest in, the first thing to consider is how they can benefit your existing operations. Most potentially high-profit investments are high risk, while safer investments don’t pay as well, but you can profit in an additional way at no extra risk. By buying companies that are part of your supply chain, you can directly reduce the cost of your own operations. You might also consider buying companies with the potential to distribute your products in order to strengthen your connection to your market.
Looking for investors
When you’re looking for people to invest in your own business, you can take a similar approach. You’ll have to do your research and spend some time negotiating to find the right investor, but if you find somebody with an established interest in your sector, you may be able to get mentoring into the bargain. For young businesses, this sort of help can be invaluable. Make sure you have a strong business plan before you start looking for investors and discuss it with them to see how they think it might be improved.
The investment business
One man who has made a profession out of investment is Lebanon’s Azmi Mikati, the CEO of M1 Group, who is well known for his success in buying up and developing firms in the telecoms sector during his time at Investcom. Having also done successful work in retail, real estate and energy, he’s now a board member at MTN.
Mikati is just one of a number of astute individuals who have made their fortunes in this way. If you approach the market in the right way, there’s no reason why you couldn’t do likewise.
Things to remember
The single most important thing to remember when investing is not to get sentimental. There will be an optimum time to buy and an optimum time to sell, and investors tend to make mistakes when they start second guessing these. It’s also important not to be impulsive, but you may need to make quick decisions. Having a clear investment strategy will enable you to do so in a consistent, structured way.
Most of the process of investing comes down to common sense, so as long as you abide by these rules and try to balance out risky investments with safer ones, you should be able to avoid getting into trouble. You can then start building on your gains to give your company a stronger future.