Our 4-Step Process for Investing in Companies

The concept of investing directly in a company is not as commonly done compared to simply buying stocks. Finding private investment opportunities to make money is a great way to unlock additional income. There is more risk involved, but the opportunities allow you to gain above-market returns and influence the business direction. Investing in a company can be a fantastic way to build wealth. But before you do that, make sure you have a concrete process. Professional investors need playbooks to replicate their success and learn from their mistakes. If you don't already have your own process, here is Sharrans’s 4-step process for investing in a company. It's pretty simple, but it works! Enhance your investing skills by listening to related episodes below: Episode 59: The 2 Investing Models Every Serious Investor Must Know Episode 61: How to Pitch Your VC and Investor Friends Episode 62: Price & Terms – Your Unfair Negotiating Advantage “We don't look at contracts as a way to enforce something. We look at contracts as a way to memorialize our agreement.” - Sharran Srivatsaa Timestamps: 00:00 Why do you need a playbook 01:39 Mistakes can be costly if you don't have a playbook 02:22 Sharran’s framework is an excellent guide if you're considering investing in a business 03:32 Discover the origin of Sharran’s FOUR GOODS process 04:36 Good people - referrals are not enough; working relationship and history are necessary to get to know people 09:37 Good intentions - is this person friendly, helpful, and collaborative? 12:55 The two kinds of people - the person in the middle is a very dangerous person 16:46 Good rationale - the deal has to work on a simple spreadsheet; No spreadsheet, No deal! 19:16 Good contract (a Memorandum of Understanding can also work) - don't proceed with the contract without good people, good intentions, and good rationale Resources: - Grab Sharran’s 4-Week MBA for Free Connect with Sharran: - Website - LinkedIn - Facebook - Instagram