“It takes as much energy to wish as it does to plan.” –Eleanor Roosevelt.
- Understand why you are investing. A strong reason will keep you going when things become rough and things are going to definitely get tough;
- Understand the venture. If you are buying land do your due diligence. If you are buying shares, study the company. If you are starting the business do your homework;
- Do you have sufficient funds? You don’t want to start building rentals and then stall for years before roofing;
- What are the risks involved? Understand what you are getting into and find ways to safeguard your investment;
- Are there better options in terms of safety and return? Don’t mortgage your house to invest in Forex trading. Build cheap rentals or invest in unit trusts for peace of mind.
- What are the numbers? How long will you take to recover your money? What is your return on investment? What are the sales, costs, and profitability projections? When do you break even?
- Will you enjoy this project? Don’t start a restaurant if you hate fast foods. Don’t start a day care if you don’t like babies.
- Are you ready to lose some money? There are really no guarantees. If you can’t stomach any loss then hide your money under the mattress.
- Think long term. The project is going to take longer than you anticipate and will take you in directions you didn’t think of.
- I hope you know what you are doing. Don’t rear 10,000 chicken if you have never raised a single hen.
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