7 Things You Must Consider Before Investing In Any Online Business

The number of mails that I received in my inbox and the junk telling me about various investments both online and offline most times are just too numerous to count. In fact one doesn’t even know which one is right or wrong. 

There is no doubt about it, investment is very good. In fact, the richest men we see yesterday, today and the ones that will emerge tomorrow are men who understands the enormous advantage of saving their income for the purpose of investing it in a profitable business. 

Investment simply is that part of your income that you directed into a business (Existing or New) for the purpose of getting income or profit at a point in time or per time. 

That being said, my focus is on online investment. Many of which are numerous these days. You see, it has been predicted and it is true that the next generation of Millionaires and Billionaires are those that are going to be born online (from various online investments). And to this I must say again that it is true, as we have seen and would still see more emergence of youngsters who are internet millionaires. 

Even though my focus is on online investment, it should be noted that the things or points of consideration also applies and fitted well with offline businesses or investments. 

Knowing that online investments are too numerous these days, In facts the choice of the one to invest in can be worrisome. In that, predictability of success in many of them cannot be guaranteed. 

Therefore it’s all about taking risks. By the way, you also must have come across some websites and investors who asks you to donate or invest $20 to reap a profit of $200 in few hours time, $500 dollars to reap $5000 in few days. How possible is that? I’m not saying that’s not possible, but I must say also that it looks absurd. 

For this purpose and more of it do I write this article to my readers to watch it, calculate their risk and put some things into place before they start making decisions about investing in any online business.

The following points of consideration are thoughts which emerged from THE LESSONS OF THE RICHEST MAN IN BABYLON and Jason Chew’s publication in 2006

Seven things you must know or put in place before Investing in any Online Business. 

1. What is your financial Strength.

Are you in debt or not. It is always advisable to clear all your debts and save some significant amount of money before investing. Know your debts level. Calculate your income and account for every expenses cannot but make before investing. Check it. The supposedly investment your about to take, are you even capable of it. Is it not the kind you will go about borrowing money for. 

You might need to consider the following before embarking on any kind of online investment. 

Mortgage repayments, Personal tax, Loans and overdrafts, Living expenses, Emergency funds,Car expenses, Entertainment, Holidays, School fees, Credit card debts, Family commitments etc. 

According to Jason Chew: Before you start investing your money on any investment products, you should know how much you could spare each month for investment. General rule is that, you should clear your debts first, then save and invest later. That is to say the more money you put aside now, the better it will be for your future. I would say put aside 10% of your income for rainny days. 10% is a small amount that you won’t feel a pinch. Save it until you have managed to build a “dam management funds”.

2. Prepare funds for Uncertainties

This goes in line with point 1. Of course things you don’t really expect will happen can suddenly occur at any point in time. This is why it is advisable to have some underlying savings. Of course you will also not want to put all of your savings into any online investment, no matter how promising it may be. 

3. Get protection for yourself and your family. Think about it, what if the supposedly promising investment fails. What will be the lot of your family. In other to overcome the hurdles of loss that may arise from any investment, you should provide basic insurance for yourself and your family. Like life insurance, health, hazard etc. So that if at all anything happens, they will be taken care of. 

4. What capacity do you have for risk

If you’re the kind that cannot calculate risk nor likes taking big risk, it is advisable that you spend just a little on online businesses. Most time many of these investment websites do advice that investors should make use of their spare money. 

See what Jason Chew have to say:  If you are not able to take big risks, short term investment and swing trading is notfor you. It’s better to invest in mutual or trusts funds which will give a steady payout and have lower risk.If you are a high risk or medium risk taker, you can try invest in stocks, growth and hedge funds.

5. Diversify Your Investment

Recently, I was thinking of investing in some online businesses, there are just many of them, and they are all promising. Instead of focusing on just a niche, I mean an online investment, i rather spread my money on 2 others. This is because, if one fails, there’s always something to rely on. A cryptocurrency expert once stated on quora that, instead of him investing $15 dollars to get a single Bitcoin, he would rather, buy a Bitcoin of $8000, buy Etherium of $4000, and invest the remaining amount on Forex or stock trading. Two heads are better than one. 

6. Do Thorough Research before you invest. 

The problem with most people and why they fail in online investments is because they don’t considers researching the platforms they are about entering into. I could remember vividly, before the crash of MMM. It was written boldly that on the website that people should invest their spare money. But it unfortunate, we see people throwing in thousands and millions of their borrowed and hard earned money. 

You see before taking any online investments check for their reviews. There are several platforms like glassdoor, indeed, etc., online that does reviews of old an new business worldwide. Visit this websites and see what people are saying about the business. 

Jason chew says: It is good to seek experts advice. But, the money is ultimately yours. So you need to do some research and make a sound decision on what to invest even though your financial advisors might have already worked it out all for you. This is to make sure you know what you are investing in and able to keep track of them. If your investments suffer loses you will be able to make a right decision whether to sell or hold if you know your stuff well.

7. Check Terms and Conditions 

Let me conclude by saying that online investing is safe if you read all the terms and conditions. Because most people do not read it and make an investment without knowing it’s risk ratio. And finally, fall into a vast loss. But if we just look into it, many people are depending on it. They take responsibility for their families by doing this. Without benefit, no one could invest a single penny.

Before investing make sure you know the platform where you put your money in. There is some investment platform where people invest money and do trading like forex, CFDs, , stock, binary, etc. All you have to do is study it and make sure that you really want to do it. Because you have to spend time to make money.

Download this free ebook: Intelligent Investing, it contains ideas and guides for newbie investors. 

If you have gain one thing or the other, you can consider subscribing for my exclusive contents and special offers below. Oh, I would that you follow this blog by clicking on the fan base below. 



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