- Hold your second investment group meeting: to discuss and agree on...

• Appointment of office bearers – chairman, secretary, treasurer, etc.
• Registration and other statutory and administrative matters
  
  • Incorporation
  • Legal/business structure
  • PIN certificate
  • Accounting

- Engage professional service providers...

• Accountant
• Auditor
• Company secretary
• Legal counsel

- Strategic planning

• To develop consensus among all the members about the purpose of the investment group, its objectives and targets.
• Agree on a facilitator and date to hold the session.

Overcome the real challenges...

Starting an investment group may be straightforward, but the real challenge lies in being disciplined about corporate governance, day-to-day management and administrative tasks and implementing the strategic plan, in good times and in bad times. The pitfalls to avoid that often lead to the downfall of investment groups include:

• procrastination;
• having no goals;
• treating the investment group like a hobby; and
• poor leadership.

The following are useful tips that are among the key attributes of the most successful investment groups:

• Avoid recklessness, but don't fear failure: it's the best teacher
• Syndications - Co-invest with other groups: collaborate to do bigger deals, support and encourage other groups
• Leverage/borrow: use other people's money to grow. Challenge the banks!!
• THINK BIG: defy convention, step outside your comfort zone

Go to Starter Toolkit for a detailed step-by-step approach to forming an Investment Group.

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