If you’ve got cash to invest and you want to put it into a startup, you could be making a great decision. However, you need to make sure you’ve thought this through properly before actually parting with your money. Below are some questions to ask yourself:
Do You Understand This Company?
There’s absolutely no way you should invest in a company if you don’t understand it. Sure, it could potentially make you a lot of money, but there are so many reasons you should understand the company. Not only will it be more enjoyable for you, it’ll be easier to know when you’re investment is going to pay off.
Can You Add Value?
You should always invest in companies that you believe you can add value to. If you can’t add value to a company, other than your money, then you should consider steering clear.
Do You Have A Legal Professional To Consult Before Signing Contracts?
Before you sign on the dotted line of any contract, you need to make sure you have a legal professional to consult. They will be able to make tweaks to the contract if needs be so that it protects you better, or simply tell you that it’s safe to sign.
Do You Know When To Cash Out?
Knowing when to cash out is a great skill to have too. Make sure you know when you should be calling it quits. Take a look at the infographic below for more information in a more attractive format!
Credit to Fortunate Investor
Fouder of Extra Pro Services
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