Avoiding Pitfalls When You Start an Investment Club

Before you start investment club meetings in your area, you should consider several different things. Many investment clubs fail very early on in the process. Here are a few pitfalls to avoid when starting an investment club.

Investment Strategy

The most important aspect of investment club basics is to agree on an investing strategy from the beginning. Many investment clubs figure out that everyone is not on the same page, and it tears them apart. You need to make sure that you clearly spell out the objectives of the club before getting started. Then make sure that everyone that you let into the club shares the same goals.

Sticking to the Rules

You should also make sure that you set a minimum investment and attendance requirement for the club. Many clubs do not have regular attendance, and this leads to problems between the members. You also need everyone to put up a minimum amount of money in order to avoid any problems as well. You need to determine what the minimum investment is and how many meetings must be attended by all members. If these rules are not adhered to, you need to make sure that you kick out the members that are not living up to the rules.

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