Investment Checklist
Table of Contents
Investment Opportunity
List and define personal objectives for the investment.
Know your probable return on investment (ROI)
Estimate the payback period for the investment.
Discuss the investment with other investors.
Know how long this opportunity has been available.
Compare the investment opportunity with alternatives.
Make sure the financial plan is reasonable and realistic.
Understand the financial plan.
Let the financial plan be reviewed by independent professional advisors.
Check if the marketing plan is realistic.
Understand when the business is expected to become profitable.
Know when to expect a return on investment in interest or dividends.
Know how and when you will get the capital back.
Know what you are purchasing (if purchasing equity).
Know if there are warrants or share options attached.
Investment Risk
Calculate potential loses.
Know the risk of loss on this investment.
Check if all the regulatory requirements have been met.
Know what the funds raised will be used for.
Check if the business is operational now.
Calculate the burn rate.
Know how much the investment will be diluted as a result of the founders getting an interest for their sweat equity.
Check if the founders have invested an appropriate amount of cash in the project.
Know what level of involvement is expected of you.
Check if you are entitled to representation on the board of directors.
Understand the legal structure of the investment.
Secure your investment by assets.
Check if you could be legally bound to put up more money in the future.
Understand the legal structure of the venture.
Check if adequate insurance is in place for assets, key personnel and directors.
Check if all tax filings are up to date.
People
Trust the people who are making the sales pitch.
Know what and how the promoters are being paid.
Know the history of the implementers of the business plan.
Know the terms of employment, contractual and salary agreements for the key personnel.
Know the reputations of the current shareholders, officers and directors and key professionals.
Make sure a lawyer has conducted corporate and personal searches on those involved in the investment.
Download or Print this Investment Checklist
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Presented by:
John F. Smith
Stats
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184
Views: 184
Uses
22
Uses: 22
Tasks
40
Tasks: 40
Introduction
Details
Who it's for
This Investment Checklist is for anyone who wants a simple, practical way to get things done without missing steps.
- Avoid forgetting - keep all your Investment essentials in one place (external memory)
- Save time - start from a proven Investment structure instead of a blank page
- Stay on track - track progress, come back later, and keep momentum
- Coordinate with others - share the list and divide responsibilities
- Learn the process - follow the steps in a sensible order, even if it's your first time
How to use it
How to use this Investment Checklist
- Save Investment Checklist to your free Checklist account so your progress is saved and synced across devices.
- Customize it in the app: remove anything that does not apply, then add your own details for Investment (dates, sizes, addresses, notes).
- If others are involved, invite them to collaborate and divide responsibilities.
- Work through the list: check items off as you go, and set reminders for time-sensitive steps.