What do I do once I have found members of the group?

The following process should then be followed:

• Hold your first investment group meeting to discuss and agree on:

  • Common purpose of investing savings for the long term
  • Organization and governance
  • Commitment
  • Investment strategy
  • Member contributions
  • Meeting times
  • Meeting place
  • Investment group name

• 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

• Hold a Strategic Planning session:

  • 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.

What are the pitfalls that lead to the downfall of an investment group?

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.

What are the key attributes of the most successful groups?

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

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