Why Do Investment Platforms Abscond With Investors’ Moneys? - Advertorial

If you are a Nigerian and you are very active on social media, you have perhaps heard of or read about stories of business owners or investment platforms allegedly running or attempted to run away with investors’ moneys. Now the question is, is it a bad idea to invest in someone else's business? The answer is no.

Another question is, why do people invest in other people's businesses? There are so many reasons for this but we will only give three solid reasons: one, people can invest in other people’s businesses because they don't have the needed capital to start that same business from the foundation.

Two, people can invest in other people’s businesses because they don't have the technical-know-how to handle or manage that same business on their own, or because they don’t have the financial strength to employ the right people to manage it.

Lastly, people can invest in other people’s businesses because they need an additional source of income. Yes, they are doing something that give them money either daily or monthly but at the same time decide to invest in other people’s businesses to boost their income base, or as a backup plan.

Now, one’s business must not be a publicly quoted or traded one before someone can invest in it. By that we mean a business must not be listed on a stock exchange such as the Nigerian Exchange Limited before someone can invest in it. If you run a poultry farm for instance, one can decide to invest 50,000 Naira for you to expand your business. In return, you are to pay the person let say 100 Naira monthly for the period that business will last, or up to a certain period of time.

So, it is not only when someone buys shares of publicly quoted companies or invests in government bonds before he or she can be called an investor. In developed societies, businesses grow faster because people are willing to invest in them, but in societies like ours, those with money prefer to lock it up in the bank. Meanwhile, they forget or are ignorant of the fact that the money so locked up is being used by banks to do business. We are not saying you should not keep money in the bank. Keep a certain amount of money in the bank for emergency situations. An emergency situation could be your child falling sick.

Now, why do some business owners or investment platforms run away or abscond with investors' moneys? So many reasons may abound but the one that comes readily to mind is greediness on the part of the investors. Some investors are so greedy that they are looking for where they would be paid 300% daily, weekly or monthly as returns on investment, instead of quarterly which is more economically practicable globally. Young people are very guilty of this.

As an investor or an intending investor, stop going to where you are promised huge returns on investments.

As a business owner or an investment platform, do not be ‘419-minded’. Tell your intending investors what is practicable in today's global economic situation. If someone invests in your business, the essence is for you to use that money to expand that business. When the business is expanded, the revenue base will also expand. So, when the revenue base expands, don’t run away with the money, because doing so will discourage intending investors from investing in businesses, including startups.

EXCELLENT TRADERS is a trading and investment consultancy company. We are also into financial education, hence this write-up. Feel free to contact us if you need a reliable way(s) to earn additional income. Visit www.excellenttraders.com.ng or call 09063966396.