If you’re interested in receiving passive income and investing in a company like Marc Leder does, simply continue reading to discover everything you need to know about successfully investing in a company!
1. Decide whether you’d more interested in becoming a stakeholder in a business or a shareholder in a company, which is listed on the stock exchange
If you’d prefer to invest money in a company, where you’d become a major stakeholder in exchange for your investment, you’re far better off becoming a stakeholder in a company who requires further capital, in order to grow to the next level. Becoming a stakeholder is a great idea if you have business expertize or experience which you’re able to offer a business owner as well as available capital.
However, if you’d prefer to have less responsibility as an investor, you’ll be better off purchasing shares in a business instead. As a shareholder all you’ll have to do is watch the share price of the company which you invested money in, to see when the best time is to sell your shares for a generous profit. Also, make sure to keep an eye on any dips in share price which may occur over time!
2. Research the company which you’re interested in investing in
Never invest a single cent in a company which you know little about as you may very well be throwing your money away. Instead make sure to research each company that you’re interested in investing in, try to find out who the CEO and owners of the company are and whether or not they’ve achieved success in the past, with other companies. As you’ll want to avoid investing in businesses which are led by leaders who have experienced numerous high profile failures.
Also, research how many months during the past 24 months the company which you’re interested in investing in has been profitable. As ideally, you should look to invest in a company which brings in a reliable profit.
3. Try to figure out your estimated return on investment or ROI
Your best bet should be to invest in a company which projects a 15-30% return on investment per year. If a company promises you an ROI rate which exceeds 30%, it pays to be careful as the aim of the business’s owners may be to make a quick profit in a short amount of time before letting their company’s shares drop severely in price.
4. Try to invest in stable businesses who have been in business for a long period of time
As an example, it’s far safer to invest in a company who has enjoyed success for over a decade such as Alibaba and Apple, than to invest thousands of dollars into a brand new company, which offers little to no history to base your investment off. If in doubt, you can also talk to a financial advisor, who may be able to recommend businesses, which match your requirements as an investor!
What are you waiting for? There’s no better time than the present to start looking for reputable business opportunities to invest in!