The availability of start-up capital is a prerequisite for the implementation of the investment process. But before investing his money, an investor needs to decide on a specific direction for investment. Today, he has at his disposal a variety of investment methods.

At the same time, it should be understood that it is impossible to single out the best way. You can highlight the most profitable investment methods, the safest, those that will bring passive income. Having analyzed all the pros and cons, the investor needs to choose the ways of investing money that best suit him.

Currently, a bank deposit is the simplest and most understandable option for investing money. We are sure that in our country there is no adult person who would not at least have a rough idea of ​​how these investments work. There is a simple explanation for this. Most adult Russians were born in the Soviet Union, and there was no other way to invest. The whole country kept their money in savings books.

It's simple. Anyone wishing to open a bank deposit needs to come to the chosen bank, sign the appropriate agreement for a certain period and transfer the money to the employee.

In addition, bank deposits made for an amount not exceeding 1.4 million Russian rubles are absolutely reliable. This state of affairs is due to the existence of the Deposit Insurance Agency, in which banks are required to insure all money received from individuals. Naturally, within the limits announced above. Moreover, the effectiveness and viability of this system has been proven more than once in practice.

Bank deposits are a classic example of passive income. After signing the agreement, the client of the bank does not need to do anything in order to get back his money with the interest accrued on it after the agreed period.

The last advantage of this investment method is the high liquidity of investments. The client can withdraw previously invested funds from the bank at any time. Of course, minus interest in accordance with the signed contract.

At the same time, the situation with the profitability of bank deposits is not the best. Today, interest rates on deposits are 6-10.5%. This is at the officially expected inflation rate of 4.5–5.5%. As you can see, the real profit with this type of investment is extremely small.

Conclusion: deposits in banks are the simplest and most reliable option for investing money with minimal profitability.

Investing in PAMM accounts

Most people in our country have heard about the existence of brokerage companies and the Forex market (FOREX). This is not surprising, given how much money was invested in the promotion of this method of making investments and making a profit. However, not everyone has heard about PAMM accounts.

The essence of this investment method is simple. The investor through the interface of the Internet platform transfers his funds to the trader (player on the Forex exchange) in trust. For this, he receives all the profit minus the established commission to the manager.

A correctly chosen PAMM account can bring an investor 80-150% profit in a year. However, according to the law of investment, along with an increase in profitability, risks will also grow. Thus, this way of investing money can both enrich and bankrupt the investor.

Currently, on most platforms, the minimum amount to invest in a PAMM account is $ 100. You can withdraw funds from the system in 1-2 business days.

The main challenge for the success of such an investment is choosing the right reliable brokerage company. There are many options on the market, but in this case there is a high risk of being a victim of scammers. Therefore, you should work with reputable and trusted companies. For example, Alpari.

Choosing the right trader-manager is equally important. Here we advise you to take your time, carefully study the ratings of the candidates and follow their investment activities for several months. This time, as a rule, is enough to select a manager with a suitable investment strategy.

Conclusion: PAMM accounts are more than an interesting tool that is perfect for an investor who is ready to bear some potential risks of loss of invested capital.

Shares of mutual funds

A mutual investment fund is a company that accumulates investors' funds and, on the basis of the formed capital, buys promising financial instruments for its investment portfolio. In this case, the management of the funds of the mutual fund is carried out by a professional trader or a whole company.

Choosing a fund is also an extremely serious and responsible task. This segment of the investment market is still developing today. In this connection, the risk of being involved in any fraudulent scheme is also quite high.

The level of profitability of several mutual funds can vary greatly. It will be directly related to the approach to investing, which is preached by a professional manager. However, if an investor chooses a reliable fund with a conservative approach to stock trading, then he cannot boast of too high a yield. Usually it varies between 25-40% per annum.

The size of one share can range from several tens to several thousand rubles. Rarely does this amount exceed a thousand. You can withdraw your money from such funds in 2-3 days.

Conclusion: mutual funds are currently underdeveloped in Russia. Nevertheless, with the right analytical approach, an investor can choose a fund with an interesting level of profitability and acceptable risks. At the same time, we believe that this type of investment is inferior in its attractiveness to the same PAMM accounts.

HYIP or HYIP projects

This is a new name for the good old financial pyramids, from which Russians have suffered a lot in the 90s of the last century. Only HYIPs are implemented on the Internet and often have an even shorter lifetime.

We want to note right away that the investment option under consideration has colossal risks.

Investors who have invested their funds in some HYIP project receive the declared income from the money of newly attracted clients. At some point, a scam occurs. In other words, the hype creator dissolves on the Internet with investors' money. In such a situation, only those depositors who manage to withdraw their money on time remain in the winners.

In order to invest in HYIP, it is enough to have access to any popular electronic transfer system. The minimum investment is quite low. It amounts to several hundred or thousand rubles.

HYIPs attract clients with huge profits. This can be a few tenths of a percent a month or even a day. In the latter case, the life of a financial pyramid can be calculated in several days. However, there are HYIPs that have existed for several years.

Another point that should also scare off potential investors is that you cannot simply withdraw your money from such a pyramid. They return gradually as payments are received.

Conclusion: the considered investment method is suitable only for financial suicides or people with extremely developed intuition.

Sports betting

Many people perceive sports betting as a game of chance. At the same time, there are professionals called privateers who have turned them into a profitable investment.

There are two main ways to make money on this investment option. First, a person can place their bets on their own. Secondly, there is an opportunity to invest in PAMM accounts owned by privateers. This can be done on the appropriate Internet sites.

The profitability of the investments under consideration can be very different, including negative. At the same time, the risks of loss of invested capital are extremely high.

The advantage of sports betting is the extremely low threshold for such an investment. An investor can start with an amount of several tens of rubles.

Conclusion: an extremely subjective and dangerous way of investing.

National currencies

This method of investing money is widely practiced by people who do not believe in the stability of the Russian ruble. It must be said that there are all grounds for this in the modern history of the country. Against the background of our national currency, dollars, euros, pounds sterling, yuan and Swiss francs look much more attractive.

This investment is often worthwhile in the long run. In other words, over a period of several months, the major world currencies may depreciate against the ruble. However, in the context of several years, they only become more expensive.

That being said, there is a common mistake that novice foreign exchange investors often make. In an attempt to protect themselves from fluctuations in the exchange quotes of currencies, they keep half of the money in rubles, and the other, say, in dollars. The problem is that with this approach to investment, absolutely nothing can be earned. The explanation is simple: as much as the price for the American goes up, the price for the Russian will become exactly the same, and vice versa.

But what the currency has no problems with is liquidity. Indeed, an investor can convert dollars or euros at any time at the nearest exchange office. Just do not forget that on each such operation, you lose the commission that the exchanger charges.

Conclusion: buying foreign currency is easier to consider from the point of view of saving savings than accumulating them.

Securities

There are a large number of securities. However, many people have only heard about stocks and bonds. But few people really imagine the process of investing in them.

At the same time, it is not difficult to acquire stocks or bonds of the chosen company. This can be done at any major bank or brokerage company.

There are big questions about the profitability of this financial instrument. Indeed, in order to make money on such investments, an investor needs to have certain knowledge and experience. At the same time, the level of risks in such an investment is quite high.

This investment asset has excellent liquidity. You can sell stocks and bonds on any business day at the current market value.

Conclusion: the way of investing in stocks will be profitable only if the investor has serious professionalism.

Investment does not tolerate haste. This statement is true regardless of the investment method you choose. Before you act, you need to properly analyze the situation and only then make an informed decision.

• Tilda
• Consultant Plus
• Slack
• Trello

Lawyer-entrepreneur, company founder NewLawyers. Has a higher legal education, is a candidate of legal sciences. More than 10 years worked in the company Ernst & Young, where he was involved in supporting M&A transactions, restructuring and preparing business for the arrival of investors, representing the interests of investors and startups during negotiations. Launched a service together with partners NewLawyers.Lite, which helps small and medium-sized companies to save on legal services while maintaining a high level of legal protection of the business.

What is important for any investor

There is no single algorithm that all investors are guided by when deciding whether to invest in a particular project. It largely depends on who the investor is and what his strategy is.

Nevertheless, there are a number of fairly general requirements that any investor is guided by. Among other things, he needs to understand what exactly he is investing in, and for this he needs to know exactly:

• what is your product and its audience;
• what is your business;
• what are the financial flows in this business;
• how this business is organized;
• what are its main risks;
• what are its prospects - market and financial.

Due diligence

To get answers to all these questions, the investor conducts the so-called due diligence. In an ideal world, due diligence is a fairly detailed study that reflects key information about a potential investment: from key financial indicators to information about who owns and operates a business and how.

The author had to work on projects where due diligence reports reached several hundred pages in small print. However, due diligence has its own specifics in relation to startups.

So, a very common feature of startups is the lack of full-fledged reporting. As a result, financial specialists will not be able to accurately calculate certain indicators that may be necessary for making an investment decision. We are talking, for example, about such indicators as EBITDA, NPV, ROI, etc.

In this situation, consultants do not always seek to verify the acquired business. Quite often, they try to draw up quasi-reporting on the basis of scattered information received from the management of a startup, which will allow them to at least approximately estimate the values ​​of these indicators.

Another feature of startups is the relatively small amount of money that is required from an investor. In this case, it makes no sense to do a detailed analysis (and hire expensive lawyers for this). Therefore, quite often due diligence is not carried out at all or is very limited. In the second case, lawyers tend to focus on the most key issues: who owns the business and key assets, whether they have legal defects, etc.

Structuring

One of the most common problems identified during the due diligence of a startup is the opaque and risky legal structure of the business in which it is planned to invest.

Yes, a business registered in the IP format using the patent taxation system is tax efficient. However, you cannot buy a share in an individual entrepreneur and it is extremely problematic to protect the interests of an investor with such a structure. That is why one of the first tasks of owners planning to attract an external investor is the correct structuring of their business, i.e. its preparation for the entry of the investor.

During structuring, a legal separation of the business takes place. Key assets and contracts are transferred to a separate legal entity (or legal entities), trademarks are registered, personnel are transferred, etc. At the same time, assets and operations that are not directly related to it (for example, personal assets of the owners) are removed from the business perimeter.

Agreement of intent

An agreement of intent allows the parties to agree on their intentions and requirements for their future deal at an earlier stage of negotiations, as well as in the most general form to agree on its key parameters, conditions and stages.

In practice, an agreement of intent is used when the upcoming transaction is not so easy from the point of view of its implementation. For example, the need for such an agreement may arise if the business needs restructuring or the investor plans to conduct due diligence (albeit limited).

The peculiarity of such an agreement is that it, as a rule, is not binding. Nevertheless, a certain obligation of a psychological nature is nevertheless created in this case. It may be more problematic for a participant in a future transaction to exit it without any adequate explanation, if he has already, in general, expressed his consent to it.

Negotiation

Be careful and careful when signing your letter of intent. A properly written agreement can be of great help in future negotiations on the parameters of the deal with an investor. At the same time, if you have already agreed with certain conditions in the letter of intent, then justifying a significant change in the negotiating position can be problematic.

A well-developed agreement of intent can significantly strengthen your position, and a document that you did not delve into properly can significantly weaken them.

There is one more important point to consider when entering into negotiations with an investor. The fact is that Russian law requires the parties to participate in the negotiations in good faith. This means a ban on:

entering into negotiations or their continuation with a deliberate lack of intention to reach an agreement with the other party;

provision of incomplete or inaccurate information, including omission of circumstances that must be brought to the attention of the other party;

sudden and unjustified termination of negotiations for the conclusion of an agreement under circumstances in which the other party to the negotiations could not reasonably expect it.

If these rules are violated, the investor gets the opportunity to recover the losses caused to him from the owners and / or management of the startup.

Investment formats

There are many ways an investor can invest in a startup.

Perhaps the main and most obvious way is this is a contribution to the authorized capital of a legal entity... When using this method, the most important problem is solved - investments go directly to the business. At the same time, the investor receives a legally registered share, which provides him with the necessary level of comfort.

This method is also of interest for tax reasons. So, with the subsequent sale of the share, the investor will be able to reduce his income by the amount of his contribution. As a result, the amount of tax payable can be significantly reduced.

However, there are also disadvantages to the contribution to the authorized capital. For example, in case of bankruptcy of a company, the investor will be able to get his money back only after settlements with all creditors, which is quite unlikely. Also, when using this option, you cannot quickly share income with the investor. This becomes possible with a decrease in the authorized capital, which is a relatively time-consuming procedure. In addition, dividends can be distributed, but for this, at least, there must be profit - so that there is something to distribute.

Alternative financing option works in the opposite way - through a loan... The investor does not receive a share in the business, however, he can quickly extract his part of the income from it, regardless of the profitability of the startup. In addition, in the event of bankruptcy of a startup, the investor falls into the so-called third line of creditors, which somewhat increases his chances of a return on investment.

An intermediate option could be combined financing when the investor's funds are provided partially in the form of a contribution to the authorized capital, partially in the form of a loan. This allows you to ensure a reasonable balance of his interests: on the one hand, the investor legally secures his participation in the business, and on the other hand, he gets the necessary flexibility in terms of obtaining his share in the profit and protecting his interests in bankruptcy.

Another financing option, combining a contribution to the authorized capital and a loan, is the so-called mezzanine financing... In this case, the investor provides the startup with borrowed funds, and also receives an option (right) to buy out a certain share in the business. As a result, if the startup is successful, it gets the opportunity to buy out part of the business at a low price. If the startup does not meet expectations, then the investor retains the right to a return on his investment made in the form of a loan.

Life after

The appearance of an external investor in the company is not only money for business development, but also new obligations for the owners and management of a startup. The investor, quite obviously, wants to control how his money is spent, and ideally - to influence key management decisions.

Depending on which investment option is agreed between the owners and the investor, these tasks are resolved in different ways.

If we are talking about a contribution to the authorized capital, then amendments are made to the charter of a legal entity, which fixes certain powers of a minority participant (investor). If we are talking about a loan, then control powers are assigned to the investor, as the lender.

Recently, agreements on the exercise of participant's rights (for LLC) or shareholder agreements (for JSC) have become increasingly popular. These agreements allow for more flexible adjustment of management in the company, as well as provide for their own rules / conditions for the disposal of shares / shares of participants to third parties.

These agreements came to us from English law and were quite actively used in medium and large transactions. After their appearance in Russian law, they became available to small companies.

To formalize relations with an investor, it is best to use the legal form of LLC (limited liability company). Individual entrepreneurs are avoided due to risks, because, according to the law, an individual entrepreneur is liable with all his property, except for a single apartment. JSCs (joint stock companies) are not popular among startups - they are expensive, difficult and time-consuming to open.

In short, an investor can become a member of your LLC and invest in capital or lend money. Let's take a closer look at the mechanics of these paths.

1. The investor becomes a member of the LLC

This model is known in the business community as "investor entry." Regardless of whether the investor will enter an existing LLC or create a new one, the procedure is essentially the same. The volume of investments, proportional to the nominal share in the authorized capital, is agreed upon. Then the investor makes the agreed amount, after which the share in the company is transferred to him, and you can start making changes to the constituent documents.

Recently, the practice of concluding investment agreements between a startup and an investor has become more frequent. The main points of the investment agreement: the financing scheme, the management structure (the investor has the right to interfere in the operational management or not), the procedure for the withdrawal of participants from the project, ways of resolving conflicts. On the one hand, an investment agreement fixes key agreements, on the other hand, it can contain very specific details (for example, you can determine the court in which a conflict will be considered if it arises).

Entry of an investor into an existing startup LLC

In the event that a startup is already acting as a registered legal entity, the investor sends to the CEO a formal application for admission to the company and making a contribution to the authorized capital of the company. At the same time, even if you have an active LLC, some investment funds may also require you to register another new LLC with their participation - this is normal.

The investor's application states:

• the amount of funds deposited or the composition of other property (the value of a non-monetary contribution is determined based on the report of an independent appraiser);
• the planned term for making a contribution (counted from the moment the decision is made on the acceptance of a new participant by the general meeting of the LLC participants and cannot exceed 6 months);
• the size of the estimated share as a result of admission to the LLC participants (in percentage or as a fraction);
• other conditions for making a contribution and joining the company that do not contradict the law and the company's charter.

The decision of the general meeting of the company's participants to accept a new participant and increase the authorized capital at the expense of his contribution is taken unanimously and must fully comply with the investor's statement. The fact of making a decision and the composition of the participants present must be confirmed by notarization. At the time of the decision, the current charter of the LLC should not contain prohibitions on increasing the authorized capital by accepting contributions from third parties or other similar restrictions. If your charter contains such a prohibition, you must first amend it.

The process ends with the payment of the share by the investor and registration of the changes in the tax.

Creation of a new joint company with the participation of an investor

If your startup does not yet have a legal entity, creating a joint company with the participation of an investor looks like the most logical investment option.

The contribution of the entrepreneur himself, as a rule, will be intangible assets (rights to use the results of intellectual activity, transferred under a license agreement), technological equipment or real estate. If you have any of this, then pre-evaluate your property with an independent appraiser.

The relationship between the co-founders of the new LLC should be described in as much detail as possible in the charter, including the rules for distributing votes at the general meeting of participants, the principles of partners' participation in the company's profits, the procedure for participants to leave the company and resolve conflicts, as well as many other essential conditions. Few remember the bylaws when things are going well, but lack of attention to detail and a formal approach can make your business more difficult and life-threatening, if not a breeding ground for abuse by unscrupulous investors.

2. The investor does not become a member of the LLC

Not every entrepreneur is ready to share the management of their project. In this case, the solution may be debt financing from an investor who agrees not to interfere with the operating activities of the startup.

Providing investment in the form of a loan

The investor can provide interest or interest-free loans - it all depends on your agreements. The amount is returned, as a rule, in a lump sum after a long period of time (2-3 years).

The provision of investments depends on the risks of the project and the requirements of the investor. In practice, most often, the pledge of intellectual property objects (for example, programs, inventions, know-how) and shares in an LLC are used as collateral for the repayment of a loan.

In order for the money to be spent efficiently, the loan agreement may stipulate the condition for the borrower to use the funds received only for certain purposes (targeted loan). This condition also implies the investor's control over the spending of funds. If the money is spent inappropriately, the investor may demand early repayment of the loan with interest. The forms of control and the procedure for return are agreed upon in the loan agreement.

Combined investment scheme

Its essence is that the investor provides a loan for a share in the company in the future. This is a modern way of investing, which takes into account the interests of the startup and the investor in equal measure.

The flexibility of this scheme lies in the fact that the preliminary contract for the sale and purchase of a share in an LLC is subject to execution only upon the occurrence of the so-called. suspensive condition- usually after a startup reaches payback. In this case, the terms of the loan agreement will be similar to those discussed above.

Possible options for the investor's exit from the startup - at the actual value of the share or through the return of the loan (interest on the loan) - are recorded in the charter during the execution of the contract.

This scheme is similar to the popular convertible loans in Silicon Valley (Convertible note), with which a startup obtains funding with the investor's right to convert debt into shares of the company in the future, taking into account the risk discount. In this case, the size of the investor's block of shares will be proportional to the ratio of the amount of his loan to investments in the next round of investment.

The combined scheme takes into account the Russian realities to a greater extent (for example, the peculiarities of an LLC, where there are shares, but no shares), however, it requires an estimate of the company's value in a preliminary agreement long before the events occur.

What is important to remember when entering into a relationship with an investor?

Regardless of whether the investor insists on a particular form of investment or not, treat it carefully, especially if you are dealing with a lay investor who invests from time to time or for the first time.

Remember that when a team of professional lawyers acts on the investor's side, who ate the dog while establishing relations with startups, they work in the investor's interests. Therefore, you, at a minimum, should be on the safe side and involve an independent legal expertise, which will check all documents to ensure that your interests are being met.

We hope that this information will help you understand a complex and important issue. For our part, we will be happy to help if you decide that you need a live consultation.

It's great when an entrepreneur has enough funds to do business. But this is not always the case. In 9 cases out of 10, an entrepreneur is forced to seek outside resources to invest in his business. To do this, you should carefully think over and plan possible ways to find financial investments and protect yourself as much as possible.

Consider options for attracting additional finance. Let's analyze who can act as an investor. We will try to provide practical assistance to an entrepreneur in need of financing by compiling a step-by-step guide to finding an investor.

The purpose of attracting an investor

Investment- This is a third-party injection of funds into a specific project, program, undertaking on a long-term basis, designed for delayed profit.

Why would entrepreneurs need outside funds when they have to share the profits later? The purpose for which a businessman can invite others to financially participate in his "brainchild" can be one of the following:

• growth and development of current activities;
• attracting additional or missing resources;
• an increase in fixed assets;
• assimilation of technologies;
• entry into new areas of business.

Types of investment injections

According to the degree of participation in the project, investments can be:

• portfolio- funds are invested in a group of projects, and in several business areas at once or in different organizations;
• real- capital is intended to finance a specific project in order to obtain real profit.

According to the characteristics of the investor, investments can be divided into:

• state;
• private;
• foreign.

According to the nuances of the financed project, investments are allocated:

• intellectual;
• production.

If possible, the investor can control his investments:

• controlled;
• uncontrolled.

Options for attracting investments at different stages of the project

To get money for his project, he must show his worth. And in order for the project to work, you need money. How to get out of this vicious circle? For each stage of the project's functioning, it will be more expedient to attract investments from different sources.

1. Planning stage. If an entrepreneur has an interesting business idea, perhaps a model or a sample of finished products, but management and processes have not yet begun to improve, then it makes sense to ask for funds from such sponsors:
   • inner circle (relatives, friends, associates);
   • public investment (there are special programs to support some innovations);
   • venture capital investments (they are just for risky startups).
2. The beginning of the project. The business plan has been developed, the team is being formed, the process has started, but there is still no profit. In this case, money for further promotion can be given by:
   • venture funds;
   • private investors;
   • foreign sponsors.
3. Good start. The organization took a certain place in the market, the project began to make a profit, albeit not too much for now. To expand activities, funds can provide:
   • private equity funds;
   • venture capitalists;
   • banks (at this stage of the project, when the first results are already visible, credit institutions can already risk their funds).
4. Growth and development. When the profit is already obvious and stable, it will not be difficult to find investors. They will gladly invest in such a company:
   • venture funds;
   • foreign capitalists;
   • state funds;
   • banking institutions.
5. Well-established business. When the growth and prospects of the business are not in doubt, the company occupies one of the leading places in the market, investors may even “fight” for the right to invest in a clearly profitable company. In this case, you can no longer just accept sponsorship investments, but publicly sell your shares. In addition, you can take as investors:
   • private entrepreneurs;
   • banks;
   • Pension Fund.

Main sources of investment

In addition to private investments, an entrepreneur can be invested by banks or the state.

Public investment"Sharpened" for specific programs. Their rules are very strict and cannot be changed. Most of these programs are designed for manufacturing companies, so not every entrepreneur can benefit from state support. As a rule, government money is intended for the purchase of equipment, materials, and transportation costs. The entrepreneur will need to look for funds for labor compensation, advertising and other expenses on his own.

Bank investments, that is, loans "for business" will not be given to anyone. In order to take money for a specific case, it must have already been started, or the borrower must have another stable income. This is due to the need to pay bank interest.

Private investment- the most promising sponsors for a budding entrepreneur. Among the many types of companies and funds that are ready to provide financial assistance at any stage of the project, any businessman can find the right one for him.

One of the forms of investment convenient for novice businessmen are business incubators- organizations that specialize in financing and supporting entrepreneurs at the start of their business journey.

Within the framework of the "incubator", a businessman can get a lease on premises on favorable terms, he will be helped with accounting and legal support, and he will be provided with consulting services.

Finding an Investor: A Step-by-Step Guide

If an entrepreneur has set himself the goal of attracting investment capital, a difficult path begins in front of him, which he will have to go through step by step.

1. Choosing a reliable investor. The investor will become a strategic partner, so you need to approach his choice very responsibly. To do this, you need to clearly understand what type of owner of money may be interested in your project. The choice depends on:
   • stages of project functioning;
   • own financial capabilities and resources;
   • the presence of additional investment attractive factors (unique assets, liquid collateral, an original and viable business idea, etc.).
2. Formation of a proposal. Having outlined the circle of prospective investors, you need to convey to them the information that they can profitably invest their funds in your project. To do this, you need to correctly "package" information about the project:
   • highlight the benefits;
   • justify profitability;
   • provide a realistic business plan;
   • to clarify the circle of future consumers, that is, the potential sales market.
3. Drawing up an investment resume. The entire attractiveness of the project for investors should be presented as succinctly and succinctly as possible. A correctly composed investment proposal - an "advertisement" for your project - can be more effective than a personal meeting with future investors. If the businessman does not feel able to do this, the preparation of the proposal can be entrusted to one of the consulting companies.
4. Sending an investment proposal and resume. The optimal number of potential "sponsors" to whom the proposal should be made should be determined. One or two appeals may not give a result, and a large number of recipients will call into question the seriousness of your intentions. Practice shows the greatest efficiency when contacting 10-20 potential investors: the response rate will be quite sufficient.
5. Negotiation. If people are interested in your application, a personal meeting will be required, which will resolve the issue of investment opportunities. Negotiations must be carefully prepared: create a short, bright, convincing presentation in which you need to highlight the key issues related to the project. It is advisable to use illustrative materials and handouts. A potential investor will probably ask a lot of questions.
6. Documenting. Personal agreements are recorded in an official document, a kind of contract. In investment practice, such a paper is called a "letter of commitment" or "registration of the terms of the transaction." It has no legal force, however, it is preliminary in relation to future official cooperation, which will begin after the signing of the contract. Only then can the company receive the coveted funds.

What is the benefit of investing funds? Material and non-material investments in investment ideas.

Investing is the process of increasing capital and accumulating profitable assets. There are many areas of investment, as well as objects. All of them can be classified according to goals, types of benefits obtained, timing, etc.

Consider investment as tangible and intangible investments in investment ideas, real estate, securities and a wide variety of projects. Almost any asset can be an object of investment funds. However, not every investment idea is feasible. What looks like a profitable investment proposition in theory or on paper may not work in real life.

What is the benefit of investing funds?

For ordinary people who are not associated with professional investment, this is an opportunity to preserve, protect and increase their savings, as well as accumulate the required amount to achieve financial goals. In addition, novice investors gain the necessary experience and create a platform for further investment in larger projects.

Large investors and entrepreneurs do not just invest income, but also beat off expenses on investment activities, as well as expand their business, master new sales markets.

Investment characteristics

When evaluating an investment proposal, pay attention to the following characteristics:

1. Profitability. How much can you earn? What is the minimum and maximum percentage? How are these interest rates achieved?
2. Risk level. This is the degree of protection of your investment and the likelihood of incurring losses. In terms of importance, it is not inferior to profitability and agrees with it according to the formula: the lower the risk, the lower the profitability, and vice versa.
3. Liquidity. How soon will you be able to sell assets if you urgently need money, and how much is the loss in case of an unplanned sale?
4. Transparency. How often will you receive information about the value of assets and changes in their structure?
5. Timing. Investments can be long-term, medium-term and short-term. This also includes the possibility of early withdrawal of invested funds and preservation of accumulated investment income.
6. Complexity. How much effort and time does an investor need to buy / sell assets and generate income?
7. Confidentiality. Who will be aware of your investments and the level of income generated?

When choosing from investment proposals on your own or when discussing possible investment options with your financial advisor, ask yourself the above questions and try to find an answer to them. Along with the modern possibilities of risk profiling, this will help to choose the right direction, investment idea, as well as a specific investment product.

Where to start investing income

First, analyze your capabilities. It is definitely worth considering various investment proposals for those who have free cash, regular income and at the same time have a financial safety cushion. If your personal budget needs to be optimized, do it before investing in any assets. If you have outstanding loans, pay them off first. If you have a mortgage for 20 years and free money begins to appear, think about whether it is worth paying off the debt with increased payments or investing. For a detailed calculation in such a situation, it is better to contact a financial advisor.

Decide how much you are willing to risk your money and whether you will have the opportunity to make regular contributions. The latter is optional, but recommended for those who have set themselves a financial goal and strive to achieve it as soon as possible. If the investment of funds is supposed for a long period, then be prepared for the fact that assets can both greatly lose in price and significantly rise in price. For newcomers to investing, these fluctuations are often reasons to get rid of assets. This is the wrong strategy that leads to losses. Don't let your emotions get the better of you: investing requires composure.

Don't rely entirely on predictions. Analysts, no matter how professional they are, cannot predict market behavior with 100% accuracy. But also do not neglect their recommendations. Use different sources of information, compare, compare and think for yourself.

If you decide to invest your income in securities, choose the "barbell strategy": do not play with medium-risk securities, but invest 90% of your funds in the most reliable securities, and 10% in risky ones with high potential income.

Investment targeting

Determine the purpose of your investment before choosing a specific investment idea. Whether it's a large purchase, retirement savings, funds to start a business or for education, you somehow need to keep in mind a specific amount, taking into account annual inflation and a possible rise in prices. Knowing this amount, you can, in consultation with a financial advisor, calculate the time frame for achieving the goal, the amount and regularity of additional contributions.

It is also possible to invest income without specific goals, but then you need to decide on the purpose of investments: preserving capital, increasing it, or some average, intermediate option. If you have not decided on the goal, you can, for example, visualize the protection of capital from inflation, economic fluctuations and external factors. This will also be a financial goal.

Where to get investment ideas?

The main source of investment proposals, ideas and ready-made strategies is your financial advisor .. This service has always been and will be free of charge in BCS Premier. A financial advisor will not only draw up a personal financial plan, select investment products, but will keep you updated on new prospects in the field of finance and profitable investments.

Also, don't forget to improve your own financial literacy. Collect information about investing by yourself. Use books, websites, articles on financial topics. Try to master the basic terms, mechanisms of action of various investment products. You can ask your financial advisor all questions that arise.