Tuesday, January 24, 2017
Things to Consider before Investing in a Company
The former CEO of NIC Inc., Jeffery Scott Fraser has led numerous companies to success over the years. Now retired, Jeffery S. Fraser focuses on supporting various business endeavors, including as the owner of the Tsaina Lodge in Alaska and an investor in the company Job Pose.
Investing in a company can be a great way to increase your income, but there are several things you should consider before making your investment. Below are just a few of the important things for you to learn about a business:
- Performance. A company’s current money management habits can be a good predictor of how it will handle future events and market changes. Make sure you look at whether the business has been making money in recent years and ask about how it plans to use that money. Further, check whether the business has been growing in recent years.
- Leadership. Management plays a huge role in a business’ success, so you will want to look at the track record of its CEO and other executives. Check for their experience in the field and with leading companies. However, history is not always a good predictor of future success, so make sure you also ask them about their business model and strategies.
- Risk factors. All investments come with a certain amount of risk, but you can limit this risk by doing some research before investing. Look into factors that may affect a company’s performance and growth in the future. This includes checking into how established competing companies are and determining the likelihood that the company will need to borrow money.