Making the decision to start investing is exciting. Since anyone can invest in companies raising capital under Regulation A+, we want to give you some suggestions on being a successful INVESTOR. It’s important to keep in mind that all investments have risk involved; there is never a guarantee that your investment will yield a certain return. However, there are certain things you can do to increase your chances of positive investment outcomes.
- Select companies you believe in
- Know your liquidity options
- Be a brand ambassador
- Keep tabs on the companies
One of the biggest rules in the world of investing is due diligence. All accredited investors have their own process for vetting companies before they invest. It should be the same for all investors (including non-accredited ones). Since companies raising capital via Regulation A+ have to file “Form 1-A” with the SEC and provide “Offering Circulars”, both of these are easily accessible to potential investors. Check them out in advance of investing to see if it seems like the company is on a positive track.
Next up on the list is knowing your liquidity options. Most of the time with investments under Regulation A+, your shares can’t be sold in the first few years. Each company issuing securities will be different, so it’s important to know the situation of the one you’re considering. The highest potential for returns in a Reg A investment is if the company you invest in goes public. Knowing the specifics of the shares you’re buying gives you the best chance of success!
One of the most exciting things about investing is being a brand ambassador! Since you’re personally invested in this company, it will make even more sense for you to promote them when possible. You can do that by buying their products, wearing their gear, making introductions or referrals, sharing exciting publicity about them, and more. For instance, if you invest in a spirits company, support them by buying their brand of alcohol on a regular basis and bringing it along to any parties!
Last, but definitely not least, is to keep tabs on the companies you invest in. Stay informed on any news about them, read any of the updates they publish to their investors, and reach out to them if there’s anything of concern. The more you know about how a company you’ve invested in is performing, the more likely you are to have a positive investment outcome.
Investment can be like many aspects in life — not every attempt results in a win. It’s very common to lose — possibly the entire amount invested — on some investments. Fortunately, there are things you can do to increase your chances of successful investing. Keep track of everything, learn from any losses, and remember that investing is a long-term strategy.
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