Here at Investamatch, we don’t just foster connections between the business and investment communities, we also aim to demystify the investment world itself for the everyday investor and business startups through valuable, real-world insights, education and knowledge sharing.
In this, the first in our series of ‘Ask the Expert’ interviews, we talk to accountant Jared Le Roy, director at Embark Accounting. Jared works with a wide range of unique and diverse clients and has a passion for assisting them to get the most out of their situation. Jared’s insights on everyday investments are logical, perceptive and practical. Read on to hear his take on the process.
We asked: based on your expertise, what are the top 2-3 things a person should consider before adding their opportunity listing on Investamatch?
- How much money they need
- What they are going to use it for, and
- What they are willing to give up to receive it
Who are the top 3 experts people listing opportunities on Investamatch should consider talking to before they start their listing?
- Their accountant
- A lawyer
- The bank (if they haven’t exhausted other avenues).
What makes you look more closely at opportunities listed on InvestaMatch?
Firstly- is the opportunity in an area of interest to me? What details do they have ready? Can they answer the 3 things above?
What are the top 2-3 things someone seeking investment should do when an investor indicates they're interested?
Investment is a two way street, so ask why this person would be a good fit. What do they bring to the table? Do you want to work with them and what is their exit strategy?
If someone is inexperienced with negotiations (closing investment conversations), what are your top 3-5 negotiation tips for opportunities?
- You own it now so don't do the deal unless you are 100% happy
- Work through the details of what taking on an investor means (you might have someone to answer to now)
- Ask yourself- are you willing to give up your baby? Is there another way?
Do you have different tips for people looking to become a first time or everyday investor?
This is pretty similar to what I’d say to opportunities: it's a two way street, so what involvement do you want? Do you bring more than cash to the table? What is your exit strategy?
What are the top 2-3 things a first time or everyday investor needs to be thinking about when they begin to look at opportunities?
Firstly- do you want to be silent or involved? Secondly, what return do you want, and when do you want to see that return? Investing in Start ups or Small Business NZ is not a straight forward thing, in some cases it will mean a significant change in mindset if required by the current business owner.
Who should first time investors or everyday investors talk to before committing to an investment - and why?
An accountant and a lawyer - to understand what you are getting involved in. This does depend on your experience? Why are you looking to invest in something? Generally speaking people struggle to go from term deposits to managed funds, so going from term deposits to investing in NZ small businesses is huge.
What are your top tips for working out if an investor was 'for real' or 'tire kicking'?
This can be next to impossible I would say, so have an NDA ready and any information you give out should be pretty stock-standard until they get to the serious end of talking about what the investment is going to look like.
Lastly, do you have any killer pieces of advice to help investors make sound decisions when engaging with an opportunity?
Only put funds up that you are willing to lose & think about how you are going to Exit before you invest!
Valuable accounting perspectives & insights from Jared that will help educate and inform- thank you for talking to us Jared. Are you making plans to finance your business through external investments, or begin your journey to investing in someone’s future? Investamatch is here to help- get in touch today and let us guide you through the process.