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If you’ve read my get money series, you’ll hopefully have some money at this point to invest. I’ve mentioned a couple of investment alternatives in the article grow your pile of money. Clearly, the best alternative is to invest in either your own business, or someone else’s business that you understand. So the question becomes, “How exactly do we go about finding a company with a good business plan?”

Well, we can use the guidelines from my coming up with business ideas article. Afterall, if it’s a good business idea, and someone else is already doing it, might as well just join them! Here are the things to look for:

Fills a Need – Make sure that the business actually does something that someone will always want. For example, a business dedicated to bringing you the best housing, or a business that supplies people with books, is a solid foundation. A business that tells you to send them a dollar and pass the letter on is not. Any sort of business which doesn’t fill an actual need like multi level marketing (MLM) schemes are bound to fail. The more the need being filled matters, the more solid your business foundation. For example, people are fine without MLM books; people aren’t fine without food.

Is Run Well – Does the CEO sound like he sits on his ass all day and drinks beer? Is management in it to make a quick buck for themselves, at YOUR expense? Find out about the people running the business. Make sure that they actually care about filling the need in part 1. Just remember, if the business isn’t filling the need, it’ll disappear.

Has a High Barrier of Entry – The business should be hard to replicate. If it ends up making a lot of money and it’s easy to duplicate, pretty soon, there will be thousands of businesses just like it! People aren’t dumb – if they’re making their 8% in bonds and they see you’re making 200% with your business, they’re gonna come. This is where the branding of the company, and quality of the product becomes of paramount importance (see how much money is integrity worth?). If people trust the company, and the product is working just fine for them, it’ll be awfully hard to get them to switch. This is an interesting situation which I like to call the gap concept.

Is Underpriced – Let’s face it. We want to make money, so we’re looking for something cheap. Now, that doesn’t mean we’re ripping the other people off. It’s cheap for a reason. For example, if it’s a private business, the owner may need money to expand, or if it’s public, people may perceive the company to be very risky or unsuccessful for whatever reason. In that case, by putting your money in, you’re actually giving it your vote of confidence and making it slightly more expensive.

Of course, the more promising you think the business is, the more you can pay for it. Just keep in mind though that there’s potential everywhere while good results are hard to come by.

While there are probably other things to look out for, these 4 are by far the most important. If you just follow these 4 tips, you should be well on your way to finding a good, safe business to invest in!

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Comments

38 Responses to “How To Find A Good Investment”

  1. : SuccessPart2.Com on July 27th, 2007 5:04 pm

    [...] Wong presents How To Find A Good Investment posted at Personal Development for INTJs, saying, “Wondering what kind of business to invest [...]

  2. wema7300 on August 29th, 2007 8:04 am

    Wonderful tips, GOOD points…But old fashion… I mean, who doesn’t want to get rich fast and easy in nowadays… But it’s hard to find an opportunity that satisfies all 4 criteria…

    Think about NIKE, and FATHEAD, and all other products out there in the market..Say CoCa Cola…

    They sell overpriced products, Yet successful…

    There are other products…say bottled water…How ‘high’ is the barrier to entry? How much over priced they charge??? How conveniences to replace them by other alternatives (not talking about crisis here..) And Yet, they are making good profits…

    Excuse me for being argumentative here…But I believe…Creativity, determination, adaptability and ability to act are the 4 most important qualities to a person… and an organization!

  3. Warren on August 29th, 2007 8:14 am

    Well, water fills a need and their barrier to entry is their brand (see my other article on How Much Money Is Integrity Worth). “Overpriced” is a relative term I think. As long as people are willing to pay for it, it sounds fair to me.

    Well, with those 4 traits you mentioned, you would end up with a lot of Hitlers. I agree that they are very important in the makeup of people and organizations, but you definiately need to act positively to fill some need in order to be successful in society (as in, you fill that need without pissing a lot of other people off).

  4. wema7300 on September 2nd, 2007 6:36 am

    Really? I doubt about it.. Have lots of living proof around me.

  5. Warren on September 3rd, 2007 12:59 pm

    If you have some examples, I’d be happy to take a look.

  6. Robby Crew on February 25th, 2008 12:50 pm

    My name is Robby and i am writing an english paper about why McDonals could possibly make a good investment. I would like to uses a few of your ideas (if you are okay with that) in explaining what makes a good investment how ever i have no way to sight your information.

  7. Warren on February 25th, 2008 1:20 pm

    Hi Robby,

    If you just add a link to the website at the end of your paper, that’d be much appreciated :-)

    Thanks!
    Warren

  8. Make money blogging - July 20, 2007 : SuccessPart2.Com on June 16th, 2008 4:54 pm

    [...] Wong presents How To Find A Good Investment posted at INTJ Personal [...]

  9. salvador castaneda on April 8th, 2009 8:39 pm

    Hello, I am a Prior service veteran that has a little change and i am trying to invest into something worth investing in. I have been to all kinds of seminars invested in all kinds of get rich my way kits, and i still find myself in a “Am I THE ONLY ONE OUT HERE” situation. If there is anyone that can a help to me, feel free to contact me at showboat1976@yahoo.com or 786 278 9258 thank you

  10. kelum on July 18th, 2009 5:20 am

    Hello,
    I’m kelum Gunathilaka from sri lanka.We have a company here and having a small business.Our company having four people including two from sri lanka and two from Norway.
    We are looking for a investor for start a new business in Sri Lanka.We have good new projects.So If any one interest to join with us please contact to oddnc@yahoo.com

    Thanks
    Kelum

  11. How To Invest - How to invest « How To Invest on August 29th, 2009 3:35 pm

    [...] How To Find A Good InvestmentWondering what kind of business to invest in? Here’s 4 important criteria for evaluating any potential business investment. [...]

  12. How To Invest - How to Invest In Oil Using ETFs | ETF Trends « How To Invest on September 28th, 2009 4:38 am

    [...] How To Find A Good InvestmentWondering what kind of business to invest in? Here’s 4 important criteria for evaluating any potential business investment. [...]

  13. Tony on June 27th, 2010 9:52 pm

    autoexim is leading partner who carry oem products for cars accessories business

    we move very fast and looking for new market everyday.

  14. NCDEX Tips on October 25th, 2010 1:10 am

    Your Blog’s been very useful – great work! Like many here, I am one of those young professionals new to the world of investing (even earning for that matter :-) )and am just starting to learn a bit about it.

    I had a specific question about insurance. I have heard from a couple of sources that a term cover is better than fixed period covers (eg. LIC Jeevan mitra) which have much higher premiums which give out some tax-free payout at the end of a maturity period (the above has of 21 yrs). Intuitively, it makes sense too. But my insurance agent is trying to sell hard the latter without reasons very clear to me, maybe they get better brokerage there?

  15. Hishgee on November 13th, 2010 5:20 am

    Hello Im from Mongolia. I need good investment because i have good idea in business please help me im 4 course in university and i have a lot of dreams i believe a dreams come true if you connect me you ll send message for mail hishgee720@yahoo.com

  16. Coach Bags on December 7th, 2010 12:43 am

    A friend is easier lost than found.

  17. Salem Ramadan Ben Mahmoud on January 28th, 2011 10:24 am

    Dear sirs, Hi! Please kindly make me capable of getting&investing free stocks,bonds & entering me into your free contests.

  18. Alice on May 6th, 2011 1:19 am

    Here’s a good investment

    Increase your income that’s the best for obtaining goals.There’s many ways to do this. You can find a job at craigslist or look at your daily newspaper. I really don’t know much about your skills and abilities but I suggest you find a job that you have experience and expertise in. Right now as a college student I just make money sparely from this site I found. It’s not much but it will eventually add up.
    I must say that when I first went to the Swagbucks website, I was a little confused and somewhat skeptical. It mentioned things like being a “premier rewards site” and a leading online search engine. But if they were a search engine, then how does one generate the rewards from? And why have I never heard of them? Well, it turns out that Swagbucks is indeed pretty legit.
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  19. santhu on June 23rd, 2011 11:13 pm

    i want good business with low inevestment

  20. How to Find a Solid Investment | Financial Collapse on July 4th, 2011 3:09 am

    [...] first tip to finding a solid investment is to search for a product of service that fills a need. Find a business that performs some type of [...]

  21. ibrahim kehinde on July 30th, 2011 1:36 pm

    i want good business with low investment

  22. Joe on September 30th, 2011 8:05 am

    Am Joesph Newman from Chicago but am base now in Ghana in west Africa .i really need an investor to help in mining of natural resource.here is my phone number you can call me on 2330243540259.cant wait for call have a great day

    Joe.

  23. Mr Rich Frimpong, on October 7th, 2011 4:33 am

    Dear Sir/Madam

    We have gold dust/bar and above of Rough Diamond, Stock in our yard in Accra for Safe and Buyer are allow to view and test for your confirmation.

    Kindly Let us know if you are interested to buy any of our Product, so that we can proceed, also send me your details, if you are Broker, mandate, or if you can get buyer you are welcome we are ready to protect your interest and commission; we close deal within two (2) week we are the END seller.

    THE PRODUCT AVAILABLE FOR SALE IS STATED BELOW AS THUS:

    QUANTITY: 200KG – 1000KG

    QUALITY: 22 CARAT AU GOLD.

    PURITY: 92%

    ORIGIN: GHANA.

    We shall be grateful to furnish you with any further information that you meant required and we shall also consider it a privileged doing business with you to foster a cordial long-lasting business relationship between us.

    We are waiting for your purchase interest and quick response.

    Best regards,
    Mr. Richard Frimpong
    Asst.
    New Mont Gold Minners
    7th Avenue Off Zulma Street
    West Legon – Accra Ghana.
    Tel: (00) 233 548136021.

  24. Mr Rich Frimpong, on October 7th, 2011 4:36 am

    Dear Sir/Madam

    We have gold dust/bar and above of Rough Diamond, Stock in our yard in Accra for Safe and Buyer are allow to view and test for your confirmation.

    Kindly Let us know if you are interested to buy any of our Product, so that we can proceed, also send me your details, if you are Broker, mandate, or if you can get buyer you are welcome we are ready to protect your interest and commission; we close deal within two (2) week we are the END seller.

    THE PRODUCT AVAILABLE FOR SALE IS STATED BELOW AS THUS:

    QUANTITY: 200KG – 1000KG

    QUALITY: 22 CARAT AU GOLD.

    PURITY: 92%

    ORIGIN: GHANA.

    We shall be grateful to furnish you with any further information that you meant required and we shall also consider it a privileged doing business with you to foster a cordial long-lasting business relationship between us.

    We are waiting for your purchase interest and quick response.

    Best regards,
    Mr. Richard Frimpong
    Asst.
    New Mont Gold Minners
    7th Avenue Off Zulma Street
    West Legon – Accra Ghana.
    Tel: (00) 233 548136021.
    E-mail us on; goldmakers2008@yahoo.com,

  25. I am new to investing, Any good stock tips? » HowtoBecomeRichQuick.com on November 2nd, 2011 3:02 am

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  26. Mass Income Multiplier on December 19th, 2011 2:36 am

    Its really wonderful and watchable. I like to share it with all my friends and I am sure they will like it.

  27. Boniface kiwara on December 20th, 2011 10:11 am

    A good informative site. I sell land in kenya and a coffe broker if interested.

  28. Guest on February 12th, 2012 9:23 am

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  29. Recreating an Existing Brand | Brand Daddy | Branding Blog | branddaddy.org on March 1st, 2012 5:02 pm

    [...] strong brand name and image is a good investment for the businessperson. The many ways of getting your company and products known only enhance [...]

  30. Joey Lee on April 1st, 2012 11:40 pm

    FROM THE PHILIPPINES, you can email me Joey Lee at supreme.quantum007@yahoo.com. For me the best investment is one that will give you the highest returns when you need the most.

  31. Gayan Peiris on May 1st, 2012 2:54 am

    Dear Sir/Madam,
    I am a graduate who live in Sri Lanka. and i wish to draw your kind attention on the matters stated hereunder;
    Eventhough i have studied and obtained the required competency levels in my studies. i have been struggling to embark on my own business for want of initial capital.
    Therefore i do hereby seek your kind assistance to embark on few of the following business opportunities currently available in sri lanka.
    1. The government of Sri Lanka has decided to increase tax rates on the vehicles imported – there is an opportunity of making huge amount of profit by investing in buying and selling of vehicles.

    2. Gold prices are also on the rise – this is another profitable business to invest in gold.

    3. With the dawn of the peace the market value of lands in Sri Lanka has increased drastically.

    4. And the tourist arrivals have increased than ever before – This will open up good business opportunities for the hotel industry.

    5. Stock market can also be construed as a good investment method since it has already shown a growth prospect in the near future.

    6. With the expansion of the economic activities many people are used to have junk food as their main meals as a result people are prone to various deceases – so it has been a major booster to the hospital industry in Sri Lanka.

    7. When it comes to the FMCG sector it has been improved drastically.

    8. Investing in a Plantation sector has also shown a significant growth prospect in analyzing past performance of the industry.

    9. If you are risk averser then you have investment opportunities such as Government bonds, Treasury bill ……………..ext.

    10. Construction industry is aslo in full swim.

    Having been considered the investment opportunities mentioned above I wish if you could assist me financially to embark on a business venture which would definitely maximize your wealth and you will get a good return on investment as well.
    If you are interested, please don’t hesitate to contact me………………………..,

    I thank you in advance for the kind assistance and the condiration of my request.

    Wishing you the success in all your future endevourences.

    Best regards
    Kamal
    +94 0783 921 945
    Sri Lanka

  32. collen sithole on October 5th, 2012 4:51 am

    Cargo Handling, Clearing & Forwarding-Mozambique Ports

    Good day

    Rearguard logistics kindly present itself to your goodselves.We specialize
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    Below are the services we offer:

    Sea,Inland & AirFreight agencing
    Shipping agency
    Import & Export
    Customs Clearance
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    Distribution
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    Stevedoring
    trucking
    Stuffing & Destuffing
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    We do have offices at Maputo,Beira & Nacala Port.

    Looking forward to do business with you.

    Regards
    Collen sithole

    Physical Address:

    Rearguard Logistics Ltd

    Avenida do Trabalho nº 54
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    E-mail: rearguardlog@tdm.co.mz
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    Rearguard Logistics Ltd
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    E-mail: nalrglog@tdm.co.mz

  33. sr gerad jude on October 8th, 2012 10:41 am

    Ben Xavi Gerad duyuyorum. Aicco Sigorta kredi şirket ltd temsilcisi. eğer
    Eğer iş her türlü kişisel ticari işlem için bir kredi ihtiyacı
    işlem, bu e-posta adresi xavigeradloanfirm@gmail.com bana ulaşın

    DİKKAT: Yirmi yıl ve üzeri Aiicco sigorta ltd izin verilir.

  34. SR GERAD on December 17th, 2012 5:55 am

    Xavi Gerad Jude Am. Aiicco Sigorta plc temsilcisi. Biz 3% geri ödeme oraninda kredi sunuyoruz.Bu(CEO)e-posta adresine bizimle irtibata ilgilenen varsa:xavigeradloanfirm@yahoo.com
    Sadece Aiicco sigorta plc izin alir 20 yas üzeri edin.
    Bireysel Krediler Yatirim.
    Isletme Kredileri Yatirim.
    Konsolidasyon Kredi.
    Insaat Krediler.
    Bir veya ödeme yasindaki seçin.
    Plan kapsaminda aylik ve yillik ödemeler arasinda seçim yapin.
    Esnek kredi kosullari.
    Yil 5000 8000.000.00 Euro kadar kredi yok.
    Firmamiz Güvenilir, Verimli, hizli ve dinamik bir islemdir. Bize bugün.SR GERAD JUDE Yatirim plc: Yanitlar Isim gönderilmesi gerekmektedir,E-posta:xavigeradloanfirm@yahoo.com

    Xavi Gerad Jude Am. Aiicco Sigorta plc temsilcisi. Biz 3% geri ödeme oraninda kredi sunuyoruz.Bu(CEO)e-posta adresine bizimle irtibata ilgilenen varsa:xavigeradloanfirm@yahoo.com
    Sadece Aiicco sigorta plc izin alir 20 yas üzeri edin.
    Bireysel Krediler Yatirim.
    Isletme Kredileri Yatirim.
    Konsolidasyon Kredi.
    Insaat Krediler.
    Bir veya ödeme yasindaki seçin.
    Plan kapsaminda aylik ve yillik ödemeler arasinda seçim yapin.
    Esnek kredi kosullari.
    Yil 5000 8000.000.00 Euro kadar kredi yok.
    Firmamiz Güvenilir, Verimli, hizli ve dinamik bir islemdir. Bize bugün.SR GERAD JUDE Yatirim plc: Yanitlar Isim gönderilmesi gerekmektedir,E-posta:xavigeradloanfirm@yahoo.com

  35. bunky on January 18th, 2013 10:15 pm

    looking for best company,to start off with small investment.

  36. v.rajadurai on February 16th, 2013 6:29 am

    we would like to looking investor for our granit quarry business in south india details given below our wesite http://www.tata granites.come

  37. shanewarne on February 22nd, 2013 2:27 am

    For many beginners, the method of finding buying into ideas can be bewildering and swamping, particularly in the supply market. Everyone likes to choose supplies of thriving businesses, or companies that will become thriving. But there are just so numerous choices and a allotment of information out there. numerous investors don’t know where to start looking, or how to sort through the vast allowance of businesses recorded on the swaps. There are furthermore many kinds of investments other than stocks as well.

  38. Joel Sithole on April 17th, 2013 2:59 am

    Cargo Handling, Clearing & Forwarding-Mozambique Ports.

    Good day

    Rearguard logistics kindly present itself to your good selves. We specialize
    in freight forwarding and below services for Mozambique, Malawi, Zimbabwe,
    Zambia, Swaziland and Eastern DRC bound shipments.

    Below are the services we offer:

    Sea ,Inland & AirFreight agencing
    Shipping agency
    Import & Export
    Customs Clearance
    Warehousing
    Distribution
    Cabotage
    Groupage
    Stevedoring
    Trucking
    Stuffing & Destuffing
    Tally
    Fumigation

    We do have offices at Maputo, Beira & Nacala Port.

    Looking forward to do business with you.

    Kind Regards
    Joel Sithole
    Business Development Manager
    Tel: 00258 843456302
    Skype:Joel _Sithole

    Physical Address:

    Rearguard Logistics Ltd
    Av Vladimir Lenin.
    Entrada 1746.
    2nd andar. Malhangalene.
    Maputo, Mozambique
    Office Landline: +258 21 404967
    E-mail: rearguardlog@tdm.co.mz
    rearguard.logistics@yahoo.com

    Rearguard Logistics Ltd
    Proxen Building
    Rua: Luis Lnacio Road no 177 1st floor.
    Beira, Mozambique
    E-mail: salesrglog@teledata.mz
    mngrglog@teledata.mz
    bewrglog@teledata.mz

    Rearguard Logistics Ltd
    Bairro : Mocone,
    Casa No: 18
    Rua: Escola Primaria Completa de Mocone
    Nacala Port
    Nampula, Mozambique
    Office landline – +258 26 526619
    E-mail: nalrglog@tdm.co.mz