By J.P. Dahdah, Founder & CEO of Vantage
Do you have an itch to become a private company investor? Or do you just want simply looking to get your feet wet with the right startup?
Here are the three most important things you should know before investing in a private company.
1. Investing is not a Cakewalk. Do your research! Before making any decision to invest in a private company, the first thing you must do is learn the business. You need to learn everything: how each department works and who the major players are.
When you decide to make an investment in a public company, you have a plethora of information at your disposal. When you decide to invest in a company that is privately held, it will require extra due diligence to discover if the company’s model is viable for the long-term.
2. Request Company Financials and More. In the business world, everything needs to be on paper. Don’t just listen to a sales pitch: request their profit and loss statements, financial statements, expense sheets, sales and income and projections. Don’t worry about being too invasive — it’s up to you to make sure you’re making a smart investing decision.
3. What Is Your Motivation? Is it ego? Is it goal-driven? As with all investing, it’s important for you to understand what’s driving you emotionally — so that you can take steps to mitigate your emotional involvement and ensure you’re making a smart, numbers-based decision.
For more information on how you can discover your IRA investing alternatives, contact our team at (866) 459-4590 or Info@VantageIRAs.com.