Investing in start-ups vs investing in established business

ChatGPT4 vs Brad Camp, Istockhomes.?

Investing in start-ups vs investing in established business

Section 1 written by chatGPT4

Section 2 written by Brad Camp of Istockhomes?

Section 1?

Investing in various types of businesses and individuals, such as established businesses, start-up businesses, concept businesses, and entrepreneurial individuals, involves different levels of risk, potential returns, and involvement. Here are the key differences:

Investing in an Established Business

• Risk Level: Generally lower, as the business has a proven track record.
• Return Potential: Typically offers steady, more predictable returns but may not have the high-growth potential of younger companies.
• Nature of Investment: Often involves buying stocks or shares of the company.
• Investor Involvement: Usually limited, especially in larger companies; investors are not typically involved in day-to-day operations.
• Considerations: Financial health, market position, and growth potential of the company are important factors.

Investing in a Start-up Business

• Risk Level: Higher, as start-ups often have limited operational history and uncertain future prospects.
• Return Potential: Can be very high if the start-up succeeds, but there's also a significant risk of losing the entire investment.
• Nature of Investment: Could involve equity, convertible notes, or even debt financing.
• Investor Involvement: Investors may have the opportunity for more hands-on involvement, potentially even a role in decision-making processes.
• Considerations: The strength of the start-up's idea, business model, and management team are crucial.

Investing in a Concept Business

• Risk Level: Very high, as the business is still in the idea or conceptual phase without a proven product or market.
• Return Potential: Potentially very high, but with a high rate of failure.
• Nature of Investment: Likely to be equity-based, as the business may not have the revenues or assets for debt financing.
• Investor Involvement: Often significant, as early-stage guidance and mentorship can be crucial.
• Considerations: The uniqueness and feasibility of the concept, as well as the capabilities and drive of the founding team, are key.

Investing in an Entrepreneurial Individual

• Risk Level: Can vary, but generally high as it's based on the individual's ability to succeed.
• Return Potential: Highly variable and dependent on the individual's subsequent ventures and success.
• Nature of Investment: More informal and personal; might involve direct financial support, resources, or mentorship in exchange for a stake in future businesses.
• Investor Involvement: Typically very involved, often serving as a mentor or advisor.
• Considerations: The individual's track record, skills, network, and potential business acumen are important.

Summary

• Established Businesses: Lower risk, steady returns, limited involvement.
• Start-ups: Higher risk, potentially high returns, moderate involvement.
• Concept Businesses: Highest risk, uncertain but potentially high returns, significant involvement.
• Entrepreneurial Individuals: Variable risk, dependent on the individual's success, often highly involved.

The choice of investment depends on the investor’s risk tolerance, desired level of involvement, and belief in the potential success of the business or individual. Each type offers a unique blend of risks and rewards.

Section 2?

I must admit that ChatGPT does a very good job at writing content and is very quick but I’ve spent many years learning the finer details of setting up a business or just the concept of a business this is because the day-to-day running of a business is better left to an employee with an employee mindset which I do not have nor can I muster the established routine or the 9-5.?

In section 1 I could have asked ChatGPT to reverse the order of its writing but chose not to even tho I know most individuals will not read more than the first few lines of this content.?

In 2023, only about 2% of the population are creative thinkers and these creative thinkers are usually unsupported financially because investors would prefer to have a stable return on investment and would rather do the lazy thing and throw their money at an established business model. Given the 90% failure rate of start-up businesses, I don’t blame them.?

Therefore, I’m focussing on and placing my effort into Entrepreneurial individuals and giving them a starting point. I’m actually wanting to go one step beyond that and pair up a creative thinker with an investor.?

To be clear it’s more of a triangle, a concept provided by Istockhomes, a creative thinker and an investor who is willing to dole out money in bits and pieces along with NOT offering an hourly wage.?

As an example of this concept, I’ve set up KatherineAir https://katherineair.com a concept business model with zero income, it needs an investor to put out money to trademark the name and incorporate the business.?

BTW, did you know that a business name needs to be trademarked before a business makes any money or the trademark can not get registered??

Did you know that an investor can jump into a business at the concept stage of a business and can from there control the growth of the business and their return on investment by being directly involved with the business from the start?

Yes, they can actually jump in early, Become a business partner and gain control!?

One of the hardest things to do is come up with a concept. Once the concept is in place finding people to write a business plan is fairly easy and finding someone to be a CEO with a wage is also fairly easy.

The biggest return you will ever get on any investment is getting in early!?

Want to get in early? Check out what we have set up as early investments they are listed at https://paruse.com/collections/invest

If you would like more information send me an email

Brad Camp

Istockhomes