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Easy Steps

The steps involved in successful investment include:

  1. Investment Motives Review

  2. Investment Opportunity Identification

  3. Investment Opportunity Selection 

  4. Market Research

  5. Competition Assessment

  6. Strategy Development

  7. Business Plan

  8. Independent Review

Scroll down to see more details.

1. Investment Motives Review


Ever since we humans started farming thousands of years ago, we have been able to produce more than we need to survive.

Our savings can be invested internally in our established activities or in external activities, or a combination of these.

Our motives can be such as:

  • Continuation of our business

  • Provision for our own retirement

  • Establishment of a legacy for our family

  • Quarrying a finite resource

It is helpful to understand how our motivation to invest can have an impact on our choices. For more information on this, click here.

2. Investment Opportunity Identification

 The responsibility for identifying and successfully pursuing investment opportunities lies with the Chief Executive Officer.


"There is no standardized list of the roles and responsibilities of a chief executive officer. The typical duties, responsibilities, and job description of a CEO include:

  1. Communicating, on behalf of the company, with shareholders, government entities, and the public

  2. Leading the development of the company’s short- and long-term strategy

  3. Creating and implementing the company or organization’s vision and mission

  4. Evaluating the work of other executive leaders within the company, including directors, vice presidents, and presidents

  5. Maintaining awareness of the competitive market landscape, expansion opportunities, industry developments, etc.

  6. Ensuring that the company maintains high social responsibility wherever it does business

  7. Assessing risks to the company and ensuring they are monitored and minimized

  8. Setting strategic goals and making sure they are measurable and describable."

All of the provisions of the CEO's performance contract are taken into consideration by the company's External Auditor at Annual Report time.

External Auditors rely on the work of the company's Internal Audit team to perform much of the foundation work for good corporate governance.

A report published by KPMG tables "20 key risks to be considered by Internal Audit before 2020".

Some examples are:

  • Digitalization, Industry 4.0 & the Internet of Things

  • Cloud computing

  • EU General Data Protection Regulation EU-GDPR)

  • Cyber security

  • Business continuity and crisis response

As we are now aware, the business continuity responses for many companies have been severely tested by the Covid-19 pandemic.

To view a copy of the KPMG Internal Audit report, click here. Note that this introduces the concept of a Risk Radar. 

For a full professional description of the CEO's role and responsibilities from Corporate Finance Institute, , click here.

Investment opportunities can present themselves simply because we are in business. For more on this topic, click here.

3. Investment Opportunity Selection

The process of opportunity selection involves investment risk assessment. This can involve steps such as:

  • Investment Opportunity Registration

  • Investment Opportunity Risk Assessment

  • Investment Opportunity Archiving

Scroll down to view more information on these points.

3.1 Investment Opportunity Registration


This can be achieved via a simple Excel or other spreadsheet. The important data headings are such as:

  • Registration id (automatic, never re-used)

  • Opportunity label (e.g. "Electric Vehicle Charging Stations")

  • Source URL

  • Industry

  • Location

To view an example of such a spreadsheet layout, click here.

3.2 Selected Investment Opportunity Risk Assessment

Risk Assessment involves the consideration of important future events. For each important future event, we need to consider its impact on our investment opportunity (positive or negative) and its probability of occurrence within the foreseeable future (typically 3-5 years).

The consideration of important future events involves horizon scanning.

For more information on Opportunity Risk Assessment, click here.

4. Market Research

The market for a particular product or service in a particular location can be conducted online using Google Advanced Search.


The search text should be "Future market for [product/service name] in [location city]".

The timing of the source document publication should be "previous 12 months".

The source document format should be "pdf".

The first 10 documents should be sufficient information.

The discovered documents should be downloaded to a folder named "Market Research: Future market for [product/service name] in [location city]"

For assistance in using this technique, please Contact Us.

5. Competition Assessment

The same procedure as above in Market Research can be used for Competition Assessment. Simply change the words "Future market" to "Future competition" in the Google Advanced Search.

For more information on Competition Assessment, click here.

6. Strategy Development

The most important issue in strategy development is your planned business unit's rank in the marketplace.

There are very different strategies required for business units who are ranked


  • #1-#3,

  • #4-#8 and

  • #9 and lower.


   (Are you the big dog in the fight?)

For more information on Strategy Development, click here.

7. Business Plan

The quality of the Business Plan is a critical determinant of successful investment.

For more information on development of a Business Plan, click here.

8. Independent Review

An independent review of the steps leading to the Business Plan is classified as "Due Diligence". For more information on the timing and cost of an Independent Review, click here.

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