CAN YOU INVEST IN YOUR OWN BUSINESS?

Hello Dear Friends,

Firstly, thanks for stopping by to read this….however, after reading this, you will be the one thanking me…..

There is a business sense I want to quickly talk about....., but before then, can I first ask you this simple question "Can you invest in your own Business"?

Let me tell you a short story……

Sometimes ago (2023) not too far though, a client in the USA contacted my team and I to oversee an investment process in Nigeria.

The client wanted to invest in a startup with great potentials but needed us to take care of the Legal Framework...

Of course to avoid super stories that will later lead to debt recovery (smart move that some people don't think it's necessary until every other thing goes wrong)

As it is our custom at Livingspring Solicitors , we have 3 main stages when it comes to startup investment;

??Stage 1: Interview with the startup (done after our background check-up)

??Stage 2: Presentation by the startup (after he must have passed stage 1)

??Stage 3: Inspections, Paperwork and Execution

Just at stage 1 when we interviewed the startup, we discovered the following:

1. The startup had a Business name registration

2. No corporate bank account

3. No accountability

4. No self-salary payment

5. No accurate record keeping (the said startup was not able to tell us off hand his estimated customers and income)

6. Zero Legal Structure

The list is actually endless but that's the top 6

So, we decided to tell the startup to first go and restructure his business for at least 3 months and come back for another interview.

I don't need to tell you what our Report was to our client ??

?? Moral Lesson: You cannot give what you do not have

??Business Sense: If you can't invest in your Business, don't expect another person to

In Credit Risk Analysis, we have what is called "the 5 Cs of Credit"

One of them is CAPITAL ??????

Capital looks at the amount of investment you as the business owner has invested into your own Business before you begin to pitch your business for investment (loan, grant etc.)

?? Legal Insight:

Every Investor wants to see a well-structured business that has a solid legal framework for security reasons, guaranty and peace of mind

Now, my BIG QUESTION to you is, that business that you are running now or intend to start running, if you were an Investor

....”Can you invest in your own Business?!"

Looking to apply for a business loan, grant, sponsorship, funding etc.? Do ensure to first invest in your business and organize it properly.

Improper structure in business is one reason startups are unable to pay up their loan and get into serious debt issues, due to lack of accountability and real commitment.

If you want anyone to invest in your business, you will first have to invest into it.

This is worth thinking about

Have you registered for the free workshop? CLICK HERE to register

And always remember, that spending good time to learn how to better position your business is also an investment!

See you in few days time during the Live training!

Yours legal,

Precious Toju, Esq.

(Debt Recovery & Credit Risk Coach)