Dean Brown – Don’t Hand Money Over Just Because You Trust a Friend

BIO: As a father of five, Dean Brown empowers professional dads to work fewer hours per week while generating more revenue and having more fun while doing it.STORY: Dean had just lost a high-income job when his friend approached him with an investment idea. The friend wanted him to finance his business idea and get a return on it. Because he trusted his friend and was looking for investment opportunities, Dean gave him $150,000. He’s never received a penny from the business.LEARNING: Do not hand your money to anyone without a legal contract. First, understand the investment and the risk involved. Don’t be the sole financier of an investment. “Get lawyers involved, don’t just hand money over to anyone, even for a friendship.” Dean Brown Guest profileAs a father of five, Dean Brown empowers professional dads to work fewer hours per week while generating more revenue and having more fun while doing it.Working with Dean, they will learn to face their suppressed emotions, limiting beliefs, self-denial, and self-sabotage to better embrace life without guilt, anger, fear, or hate while manifesting their highest vision of peace, love, and profit with their family and in their business.Worst investment everDean had always been an employee, even though he often toyed with the idea of becoming a businessman. He was an outstanding employee who quickly rose to the top in every job he ever had.Getting thrown into the deep endIt was not until he lost his most prolific job, where he earned over $100,000 a year in 2008, that he had to start learning how to build a business. He now had to think of the best ways to invest under these circumstances.An investment idea from his trusted friendDean had this good friend who had a great vision and worked on it for a very long time. His enthusiasm was deep and engaging. Dean had a lot of faith and trust in what his friend was doing.One day Dean’s friend asked him to help him take this idea to the next level. He had developed a one-of-a-kind invention and now needed to manufacture it. However, he needed cash to do it.Giving his friend money, no questions askedDean had some money to invest, and because he trusted his friend, he gave him $150,000 there and then. He transferred the money into his friend’s account, and they agreed that Dean would get a return on the investment, and then they shook on it. That was eight years ago. Dean is yet to see a penny.Lessons learnedAlways have a contract, even where it involves friendsGet a lawyer to write a contract for you before you hand anyone money—including your friends.Understand the investment and the risks involvedBefore you spend any money, be aware of what you’re investing in. Make sure there is an agreement stipulating what you will gain from the investment.Andrew’s takeawaysA good investment starts with trustTrust is vital when it comes to investing. Before you give your money to anyone, make sure that you can trust them. Once you build trust, take the next step and evaluate if the idea is good. If the idea is good and you have trust, then now you can execute the idea.Don’t be the sole financier of an investmentAvoid investments where you’re the only one providing the capital. Be sure that the business has sustainable finances before you get in.Actionable adviceDon’t take people’s advice at face value, even if they are your friends. Cross your T’s, dot your I’s, and do your research before deciding to invest.No. 1 goal for the next 12 monthsDean’s number one goal for the next 12 months is to help people get to that place where they do not make mistakes, as he did. And also, they’re able to make a positive impact in their business and family lives.Parting words “Don’t spank yourself or grief over the losses. Instead, celebrate the wins and move forward.”Dean Brown [spp-transcript] Connect with Dean BrownLinkedInInstagramFacebookYouTubeAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast