The best way to find the right answers in business, investing and overall success is to ask better questions, the right questions. There is plenty of tradition, shirking of responsibility, and unquestioned myths that have led to mediocre results when it comes to wealth building. If you have believed that investing early, often and always is the answer, or that compound interest is the key to building wealth, these may be misleading, misinformed, or minimizing your opportunities. To find out what is right for you, your answers are only as good as the questions you ask.
Questions To Initialize
Some general initial questions to ask yourself:
- What types of things do I have knowledge in?
- Where do I have an obsession; where I’m constantly studying, researching, and making it a part of my life?
- Who do I know that I could learn from?
- What areas could I go to get an immersive type of experience to accelerate my learning?
- If I do invest, how do I benefit? What is my exit strategy?
- What types of relationships do I have that would be able to strategically benefit me?
- What ways can I lower and manage my risk?
- When do I benefit from the investment and how?
- Is there a way to create cash flow today?
Questions are an essential part of due diligence.
For example, what questions do you wish you would have asked in something that didn’t go as planned or even lost money? Questions can give you an economic advantage.
Ask yourself, “What creates recurring revenue rather than a one time benefit?”
Consider what businesses you already know how to grow, things you already relate to personally, or where you could have an exponential amount of wealth that could be created that is worth your time.
Does it make sense to invest in businesses or investment products? Would it be of benefit to increase your business or buy a business, rather than put money into the stock market?
Questions Before You Invest
Emotions create risk when it comes to investing. When the greed gland kicks in there is little room for logic.
Now, this isn’t to say that investing is bad, because you can make a lot of money through smart, safe investments. But ‘smart’ and ‘safe’ are the keywords.
If you don’t know how to protect your downside or explain the investment in a few sentences or less, it might be more of a gamble than an investment. Rushing into bad investments can become a distraction that can cost us time, emotional well-being, and lots of money.
Where should I invest? This is a common question that limits wealth.
If you ask this, you aren’t ready to invest. It means you’re relying on someone else, and their experience, expertise or a timeframe that may be different than yours.
Don’t know where to invest?
Invest in yourself and become a better investor. Better investors ask better questions. Invest in learning what questions to ask.
- What are some of the reasons this investment could fail?
- What would prevent this investment from performing on time or being worth my time?
- Do I know when to stay invested and when to move to cash? What degree of control do I have over this?
- Beyond cash flow, does it have potential for upside?
The Big Question: What Is Your Investor DNA
Your Investor DNA is unique to you.
What can you master? This is about focus over diversification— putting all your eggs in one basket and protecting that basket. It’s about investing in alignment with your competency, values, and things that you want to learn about and pay attention to— the things you are invested in seeing come to fruition in the world.
Questions are your companion.
Good questions discern truth from falsehood, opportunity from distraction, and most importantly, wealth from loss.
Who Has Your Back?
When the right investment opportunity does come along, who do you rely on to support your choices?
Those who will make sure you don’t overextend yourself or get involved in something with which you only have partial knowledge or are exposed to unnecessary risk. That’s part of the due diligence, to know who is on your team to protect you.
Ask questions like:
- Who do you know who understands your vision and has unique insight and expertise on the areas you want to invest in?
- Who isn’t persuaded or swayed by the passion of the project or venture and can tell you the truth about the risks of investments you consider?
How Does This Benefit Me Now?
Here are 3 questions that can give you the advantage right from the beginning of a venture:
- How can I make money on the buy so I’m profitable from day 1?
- How can I create momentum and money upfront before I spend a bunch of time or energy in the acquisition of a business or asset?
- How do I create cash flow immediately?
I love these questions because for me, it always comes back to the Win, Then Play philosophy.
In the Playing Not To Lose paradigm, diversification is king. It is hard to build wealth in an accelerated fashion when using something that is more about holding on to what you have.
In the Play To Win paradigm, people have a tendency to be aggressive, take on risk, and only focus on the future, without considering how to benefit now while mitigating risk.
Alternatively, Win, Then Play, is about how you can benefit both now and in the future, cash flow today and build equity up front, all while having a good exit strategy for the future.
Seeing the world through Win, Then Play is being able to ask and answer questions at the start of any investment or business that lead you to your success from the start.
Which of these questions can benefit you the most right now?
Start using these guiding questions to find answers upfront to create Win, Then Play investment opportunities so you can make money on the buy and cash flowing from the start.