Business Investing Doc. Check-List, and My Goals.

What are the point of goals? To show people or prove to yourself that you’re able to obtain them? To give yourself a path to follow so you don’t feel lost in life or your career? Pretty much everyone has some form of goal, but everyone also has their own reason, this is mine.

Growing up as a kid, you don’t often think about goals. But something I knew I wanted to do, was become was a business owner. To me, owning a business and being your own boss was the ultimate achievement. You could go to work when you want, leave when you want, nobody can tell you what to do and you have that sense of pride in ownership. As I’ve gotten older, this desire has increased. So I’ve made it a goal of mine to start saving, and start looking for current or new business/business ideas to invest in or create.

Recently, I’ve been working on building my portfolio and resume through working as an independent Marketing Consultant. I’ve talked with a couple of business owners and discussed with them about providing my consulting services to help their business and build my resume. One of the two whom I was talking with really liked the idea, and wanted to work with me. We had a couple meetings and I was at the point of building a marketing plan for his business. I struggled with how to create a plan that he would utilize, and tasks that he’d actually complete.

While thinking about a marketing plan, I thought “Why not invest so that way I can handle all the marketing aspects of the business?”. To me, it was the best way that this would work for both him and I. I get an opportunity to invest in a new business that has a great product, that has potential with a lot of work and he gets a partner to handle the Marketing. I had a meeting with the owner, discussed this with him and he was excited about the idea. I told him I needed a week or two to come up with a list of documentation that I’ll need before I can make an offer.

So this is where the goal of becoming a successful business owner seemed to be within the cross-hairs of my end goal. So throughout this time I started learning more about business investing, what information I need, and how to make a smart calculated investment. I know it takes a lot of information and money to invest into a business properly, aside from the investment itself and the risk of investing. I contacted a couple people, my sister a corporate tax accountant, and friend who owns and runs a successful business. In the end of all the learning I’ve done about this topic, this was the check-list of documentation that I created.cash

  1. Balance Sheet
  2. Income Statement
  3. Cash Flow Statement
  4. Bank Statements & Reconciliations
  5. Short and Long Term Leases
  6. Proof of Compliance with all Regulatory Bodies
  7. All insurance coverage agreements
  8. Any and all legal expenses
  9. Payment Processing/Coverage Agreement
  10. All Personal or Business loans or Contracts/Agreements where the business or any business assets are used as collateral.
  11. All contracts and agreements made with the business (Website Dev, Accountant, etc.)

With this documentation, I would be able to make a fair and reasonable offer. But the interesting part about this, is how enthusiastic and seriously he took my investing into his business, until he received this list. After he received this list, he said it would take about a week maybe two for him to get everything so that I may review it. Well, two, three weeks plus have passed, and no responses to texts or calls. And that’s more than OK.

Though I spent a lot of time on this opportunity and it didn’t work out, in the end I learned a ton about business investing, and this was an awesome learning experience, that even now I feel good about have doing. No, I didn’t walk out of this opportunity as a business owner, and no I didn’t accomplish my goal, yet… But I still see this as an accomplishment in what I’ve learned that can help me in future opportunities. This goes to show, don’t let your “failures” or lack of success turn you away from your goals, let them be the learning experiences that help you achieve them!

The two following links are websites that helped me choose some of the items on my checklist. To learn more about these, follow the links below!

http://www.investopedia.com/university/small-business/financing-your-business.asp

https://www.sba.gov/blogs/3-essential-financial-statements-your-small-business

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Business Investing Doc. Check-List, and My Goals.