How to manage limited funds? Yes, this talk business, so it pretty seriously. The goal is to develop a limited fund backed by capital plus other productions such as human resources are not there, and then were born an interesting thought. Limited funds should be managed in a way, if outside the country called crowd funding. Trend that has not been widely exposed in Indonesia is raising funds that many people are limited then be managed for investment.
Does the management of these funds can be trusted? If I was asked, for managers who are not known, the answer is to think about it. Lest the money game – the money played in the circle itself, then after a lot of the missing manager. In order to sleep well, why not just save it in a professional fund manager, licensed, and tested by a reputable institution and period of time.
But was limited funding cannot be developed in the business? Sure you can. The principle can use crowd funding model. Application is modified, such as the steps below:
First, identify business and investment space that promises high income. Do not forget, also note the risks. In stock for example, there is hope of a big income, but also threaten high risk because the price movements of highly fluctuating sharply. For businesses together, not wise to put their funds in stocks, more beautiful to play on their own.
Second, begin to form a group of prospective investors. Do not imagine that meant only capital funds. It could also be other capital, such as musical instruments after the complete collected can be rented. For cases like this, stay equipped with venture funds, or persons seeking fee contract.
Third, make this group as a peer group. These little small social groups, by Joseph Stiglitz, Nobel Laureate of Economics, 2001, considered to be very useful to prevent the occurrence of irregularities after the “peace agreement” executed or moral hazard. There are inherent mutual supervision among group members. A good example can be seen in the case of Grameen Bank Muhammad Yunus founded in Bangladesh.
Fourth, the escrow account. Make an escrow account and the account can only be availed by more than one person, once again, the main objective for accountability. Escrow account and joint account is very useful to prevent the occurrence of irregularities that could potentially be done, though by reason of mistake.
Fifth, share the role. Leave everything to the understanding and competence. There are responsible for all matters, so that the load feel lighter and clearer. Responsible for the key that is needed is someone who understands as well as many business and investment information.
Sixth, start with simulation. Feel free to talk with an expert when it should simulate a business or investment that will be worked. Simulate the potential benefits and risks. If one person has access to one expert, the five members have contacts five experts. It’s become a very useful social capital before it all already.
Seventh, prepare drafts of the target. Cling to the design are made together, can be a tool to evaluate the performance has been done. Do not let investment capital that has been collected to move wildly without good control scheme although changes or modifications could occur in the middle of the road.
There are many ways to prosper. A good environment is the social capital that could be developed into a much more productive direction.
As Mario Puzo text in one part of “The God Father”, no one is born to direct large. But he (could) grow up.