There is an investment opportunity that requires you to bring 10,000 investments in such? Give reasons for your answer. It may be difficult to identify a fake investment if we do not know the characteristics of a genuine one. Any investment that seems too juicy might be fake after all. Any investment that promises to give a 300% return within a short period is likely going to be fake; real investments bring profits in trickles until they become a mighty ocean.
Identifying Authentic Investment
Some time ago in Nigeria, a group of people brought an investment idea in which you can get about 300% of your initial deposit in three weeks. The first set of people who put their money in the so-called “investment” got three times their deposit. Some tried it the second time, and they got it three times again. The second payment convinced them that it was a genuine investment.
Some people borrowed money, and some sold their properties to have a substantial amount of money to deposit for their investment. At the end of the maturity date of their investment, they were told they should wait for an additional two weeks. Before they realised what was happening, they had been swindled.
- There are so many fake investments around us; how can one identify them?
- Any investment that promises to pay unimaginable profit in less than one year is probably not genuine.
- If the investment is too juicy and there is a promise that the investment will turn you into a millionaire overnight, it is not genuine.
- Any investment idea by a group or an individual without any form of verifiable, tangible business is likely going to be a fake investment.
- If it is that easy to become a millionaire through a particular business, why should someone ask people to pay a sum of money to learn the business? Why can’t that person make all his family members millionaires and multi-millionaires through the said business?
Appreciating the Need for Active Involvement in Authentic Investment
An authentic investment must have a verifiable type of business. It must have a registered name and address; the business must have a track record. Hard-earned money should not be thrown into the wind in the name of phantom investment. These are some of the findings that those who are financially inclined would make before they get involved in the business.
There is a need for children of God to be involved in genuine investment. Most wealthy people are involved in one business or the profit of another business. What comes into their pocket from a transaction is by far more than what some people receive as a salary in one year. Investors do not necessarily need to start big; in fact, most big investors start from scratch. Aliko Dangote started with a sum of money he borrowed from his uncle. He was using the money to trade, buying goods from the northern part of Nigeria and bringing them to the southern part of Nigeria to sell. He grew his business over time, and the business is what it is today as a result of patience, persistence, and doggedness.
There are genuine investments that children of God can be involved in. One of the best ways to identify a genuine investment or business opportunity is to take a closer look at the environment we live in; what are the needs of the people that are yet to be met? What are some of the things they need that are costly, and do you know where to get those things at a cheaper price? Once you can identify this lacuna and you know how to fill it, you are on your way to genuine investment.
Encouraging Members to Join and Participate in Authentic Investment
One challenge many people have with investment is the fear of failure. Many have never been involved in any form of investment because they know several people who have failed in such businesses. The question is, are there people in that same line of business who are doing well? Many people would tell you they can never invest in the poultry business because the possibility of losing their investment is high. However, we still have people in the poultry business.
Failure in business is part of the experience we gain. There has not been any foolproof business plan. The unexpected might happen along the line; as it comes, a business-minded person will quickly find a solution to it, so that it will not affect the business. A small-scale company decided to start with a brand new diesel engine generator to forestall the challenges of repairs now and then.
The owner was shocked when the generator packed up after the first week. It was later discovered that the diesel they bought was adulterated, the type people call “Rice and Beans”. A business-minded person would quickly find a solution to the challenge and move on.
Parents should let their children know that, apart from education, they can develop a passion for something; that thing might be what they will fall back on after the completion of their studies.
Businesses You Can Invest in
In the old Western Region of Nigeria, when Obafemi Awolowo was the Premier, the region was the first to have a television station, not only in Nigeria but in the whole of Africa. The region had a 25-story building called Cocoa House in Ibadan, one of its kind in the whole of West Africa. The region had several agricultural settlements where a special breed of cow was reared and sold to the people at affordable prices. How was the Premier able to achieve all these?
The principle of fruitfulness and multiplication can best be explained using agriculture and real investments. If you plant a seed of corn on good soil, in just 90 days, you should expect a harvest of at least one cob of maize having close to 100 seeds! These are part of the design of God for humankind; unfortunately, many people have not taken the time to give agriculture a thought. Also, land has become a hot commodity. The worth of just a plot of land ten years after it is purchased is always more than the total money used to purchase an acre of land. It is worthwhile to invest in real estate by buying landed property now to sell in the future. Both agriculture and real estate are worth investing in for a better future.
Agriculture-Based Investment
There are two types of farming: crop and animal husbandry. Under crop farming, one may decide to go into cash crops such as cocoa, coffee, cotton, rubber, etc., or food crops such as rice, beans, onions, yams, etc. Animal husbandry involves the rearing of animals. This can also be grouped into dairy, fish, bee, and poultry farming. Examples of animals a farmer can keep are pigs, cows, fish, ducks, geese, quail, etc. The choice will depend on the interest of the farmer. Agriculture-based investments require training not as easy as it seems. All businesses involve risks. We have to learn about the risks in any agricultural venture and prepare to face them before we invest in it.
Some Subsidies of Agriculture-Based Investment
There are so many subsidiaries of agriculture-based investment. One such is the production of animal feeds. Most farmers cannot afford the cost of imported feed; they would have no choice but to rely on locally-made feeds. Food production is so large that one can decide to specialise in a particular area. There are some feeds that chickens would eat, and the awful smell from their waste would be no more.
Food processing is another subsidsubsidiarymay shock you to know that those who process food earn more money than the farmers who produce the food. Many farmers do not have adequate knowledge of storage and preservation, especially for perishable food products such as tomatoes and peppers. An investor might be interested in taming tomato and pepper into a paste; it is a good avenue for cool money.
The sale of chemicals, fertilisers, seeds, machines, etc., is another subsidiary. No amount of fertiliser would be enough for farmers; the same goes for improved seeds and seedlings. Once farmers can attest to the result of the seeds, the rest is history. Market research looks simple, but it is another subsidiary that can lead to profitable business. If someone knows where cassava is produced in large quantities and knows another factory that is into the processing of cassava, nothing stops such an individual from supplying cassava to the processing factory.
Real Estate Investment
Real estate goes to school to study Estate Management. Real estate is about land and everything on it. Professionals who are really into a real investment can start with the purchase of landed property or the construction of a building that can be used for several purposes. One area that many people are not looking at is the provision of hostel accommodation for higher institutions across the country, where there is not enough space on campus to accommodate them.
Block-making factory is another investment area in real estate; whether you want to erect a perimeter fence or a building, you will need blocks. Gone are the days when people used handmade machines to mould blocks. There are now modern machines that can mould six solid blocks at once.
Investment in real estate does not necessarily mean you must have a huge amount of money; there are estate agents who are on the lookout for landed property or houses to be sold, and they connect with those who have the money. At the end of the day, they will earn a commission.
Pondering on the Possibility of Making an Effort towards Real Estate Investment
Landed property might be costly for an individual or a working-class person to acquire, but if more people pull resources together, they can buy an acre of land and share it among twelve. There are six plots of land on an acre of land; it is possible to build a magnificent building on half a plot of land. It is all about one’s mindset. Many people have not built houses because no one has told them that it is possible.
The house you built and are living in is not an investment yet until you have some amount of money coming into your purse, either from the shops or the rooms therein.
The rate at which some urban centres are developing is alarming. This is a golden chance for anyone who wants to invest in real estate to be on the lookout for virgin lands, which are not too far from the city where development can reach in about five years. This will make the land appreciate quickly. Our churches should also change their mindset about the acquisition of landed property; the idea of buying one or two plots of land to establish a church should be revisited.
Conclusion
Children should know that money is gathered in trickles; as it is popularly said, “Little drops of water make a mighty ocean”. Those who are willing to get rich quickly would fall into the temptation of fake investment, and they will burn their fingers with such moves. I, therefore, challenge all parents to take the issue of investment very seriously.
Education is good, no doubt, but our children should not be limited to only what they learn within the four walls of their classrooms alone; the situation of things in our contemporary world does not permit that. Jobs are becoming very scarce for school leavers; it does not make sense for a young graduate to be at home for years looking for employment.
There is nothing wrong with looking for a job, but before one comes, a school leaver should have a plan B. This can only be possible if the parents have taught him/her a little bit about investment while in school. Read further on this page.
Editors
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