http://blackbronx.blogspot.com/2014/10/black-wall-street-harlem-renaissance.html
I want to challenge my readers to come together, and create an opportunity to earn wealth. Create an investment club. You may be wondering how, why, and who, so I'll give you a boost; some direction. I'll use my personal situations to help you overcome these questions. I will forewarn you, this is a difficult task, and even more difficult to manage. So when you approach this assignment, make sure everything is documented and orchestrated. Anything that is spur of the moment, will be catastrophic.
Plan
Start your investment club by writing down your plan. You want to document your plan, then you want to hold everyone else accountable for documenting their plan. You may not be the head, the president, or chairman of your investment group. Someone may approach you, and invite you into their group. If you have your plan already laid out, then you set that expectation and your standards.
Not everyone's plans, goals, and ideals will align. Have you ever said, "if I won a million dollars, I'd invest some of it". What would you invest in? Who would you invest with? How much would you invest? You're just a ribbon in the sky, going wherever the wind takes you at that point. The sad part is, if you did win a million dollars, you would spend it on things you thought were investments, and get nothing out of those "investments", which boils your purchases down to consumption. See why you need a plan?
Like I mentioned, you want to align your plan with others. Plan alignment, will make voting on investments an easier or smooth task. Diversity is important, but you really want like-minded individuals working with you. I'm not saying, don't work with people whose plan isn't like yours. What I'm mean, and I must be clear on it is, if they're a more risk oriented group, and you believe in studying before making investment decisions, then that may not be the group for you. Some groups will want to buy every penny stock or short, while others will look buy long or look for investments that pay consistent dividends.
With a plan, you set your boundaries. Its your way in, its your way out. I have studied currency trades and every trader says have a plan, exit strategy, or something to that nature. Make it as long or as short as you want. The longer the more defined it should be.
Meet and gather
Person to person contact is motivating, inspiring, and comforting. When you start your investment club, make sure your partners are comfortable. Don't set up your meeting once a month in the beginning. Team build with your partners for the benefit of loyalty and consistency. Team building gets people comfortable with you, and prevents them from misinterpreting something you say or do. When collecting money, someone is trusting collections will be on time, and someone is trusting money will be safe. Establishing a relationship is part of building an investment club, you do that by meeting and gathering.
Ideas for meeting and gathering are:
1. Food - Everyone loves eating. There's no better way to build a bond, than breaking bread. Maybe have a beer, or other type of drink. You may not be looking for a friend, but inviting a partner for a Auntie Anne's pretzel and lemonade establishes small talk. Small talk puts both of your minds on the same page.
2. Recreational Activity - I visited a Park in Richmond, VA. Forgive me for forgetting the name. Anyway, this park inspired me, wanting to host competitive activities like baseball, football, and basketball games for team building. Bowling is another fun filled activity for team building, and carries a food benefit as well.
3. Other Activities - If you're religious, church is a great option. This isn't an ideal because not everyone has the same religious beliefs, but it is an option. Group activities if you're interested in the same movie is an idea. Also, Amusement parks, casino trips, the list goes on.
Take the time to know who you're working with, how they think, and their fears. When investing, some risks are always involved, and you don't want panic or uncertainty spreading through the group. Those are things that can be a distraction and poison a group. That leads me into the next step.
Create a Board
While politics can be frustrating, and most people dislike politics with a passion, it will always rise in group functions. Whether you are a fan of politics or not, to create a successful group, you have to place accountability, responsibility, and governance in the hands of certain individuals. By setting up a board of directors and a chairman, you establish your groups structure. Do not underestimate the effect this has, especially if you're going to recruit new members.
Procedures for placing members on the board can be done by vote. This is where the politics get frustrating. This is also where your plan and gathering come together as an effective tool. Remember you're not running for the board to give only your ideas and run the group. Don't try to turn people one each other. Explain why you'd like to be voted as a board member. If you're not interested in that responsibility, be careful of those who attempt to do such things. I'll reiterate that you do not want your group to be overrun by confusion, distractions, and taking sides.
Task the board of directors with various responsibilities, including in depth research on investment opportunities, networking, and group organization. The Board should not allow the members of the group to become dependent on their information solely. The Board needs to govern meetings as well. They should be reliable in taking notes, making decisions, and settling disagreements. They must know when a vote is needed, and a decision is required. The group should establish how often voting is done, and write it into your bylaws.
Raise Money, Purchase a place to host meetings
I'm trying to get my investment group to 100 members. My idea on raising money is the more people you have, the less you have to ask for. It is underestimated how quickly you can raise money. Since its an investment group, people should come with the expectation of giving money.
Use those funds for purchasing or investing. An investment group can start in a home, but retail property should be a goal. Investment groups become very powerful. Board Members can invite speakers, that costs money, but its beneficial. The more informed the group becomes, the more members will want to join. Host your meetings with an inviting setting. Have coffee, cookies, donuts, and tea available.
Try to change the culture of group members, but don't try to change them. In my opinion, investing starts with perception. Sell a prosperous lifestyle, and they'll buy into it.
Below is a Microsoft Word version of bylaws on an investment club:
INVESTMENT CLUB
BYLAWS
Provisions of the Bylaws shall not be in conflict with the
Partnership Agreement.
Article I.
To invest the assets of the Partnership in stocks, bonds,
and securities for the financial and educational benefit of the Partners, while
employing fundamental principles and techniques of sound investment practices.
Article II. Meetings (Regular, Special, Quorum)
§
Meetings will be held the third of each month and at other
times as deemed necessary. Meetings may be canceled or rescheduled by a
majority vote of all Partners present in a quorum at a given meeting.
§
Time of meeting shall be from to .
§
In the month of , the Annual Meeting shall be
held in conjunction with the regular business meeting, at which time new
officers will be elected and a full and complete Annual Accounting of the
financial condition of the Partnership shall be made to the Partners.
§
Special meetings may be called at any time by
the Presiding Partner. Also, any Partners may request a special meeting through
the Presiding Partner, in writing. In all cases, special meetings shall be
limited to the stated purpose, which must be communicated in advance to all Partners.
§
A quorum of Partners shall be present at
any regular or special meeting in order for Partnership business to be
conducted, e.g., buy or sell orders. A majority vote of the Partners present is
needed to approve any Partnership business not otherwise specified in the
Bylaws herein.
§
A majority of Partners shall be present at any
regular, special, or Annual Meeting before the election of officers or amendments
to the Partnership Agreement or Partnership Bylaws can commence. A majority vote
of the Partners present is needed to approve amendments to the Partnership
Agreement or Bylaws, or to elect officers.
§
Each Partner shall have one vote in all matters
regardless of his capital account balance.
§
Any Partner who fails to attend consecutive regular meetings without
being excused by the Presiding Partner from attending, or who fails to attend in any twelve (12) month
period, will be considered for termination.
§
The use of written proxies is hereby permitted
for those Partners unable to attend any regular, special, or Annual Meeting. A
proxy vote will be counted when it pertains to a specific issue previously
discussed by the Partners, not to issues brought up and decided at the missed
monthly meeting.
Article III. Partner Positions and Duties
Initially on the meeting date when the Partnership
Agreement is signed, and thereafter annually at the meeting to be known as the
Annual Meeting, or as needed to fill any vacancy, Partners shall be elected by
a majority vote of the Partners present, or by appropriate proxy, to the
following positions and duties:
§
Presiding Partner: Sets
meeting dates and locations, appoints committees, presides over meetings, sees
that the resolutions passed by the Partnership are carried out, and develops
the educational program for the Partners.
§
Assistant Presiding Partner: Takes
the place of the Presiding Partner when he is absent or incapacitated.
§
Recording Partner: Keeps
a record of the actions authorized by the Partners, and notifies members of
meetings and activities.
§
Financial Partner: Keeps
a record of the Partnership's receipts and disbursements and of the members’
interests in the Partnership. Places the authorized Partnership buy and sell
orders with the Partnership's broker or transfer agent, or directly through a
company, and prepares the Partnership's monthly Liquidation Value Statement.
§
Partner: Has signed the
Partnership Agreement, been voted into the Club, and signed a statement
agreeing to abide by the Partnership Agreement and Bylaws of the Partnership,
or is a minor child family member who has a custodial account being managed by
a Partner over the age of 21.
Nominations for officer positions will take place in of each year. If absence from
the Annual Meeting is unavoidable, appropriate proxies may be submitted before
the Annual Meeting to elect Partners to serve in officer positions.
Article IV. Removal of an Officer
If an officer of the Partnership (Presiding Partner,
Assistant Presiding Partner, Recording Partner, or Financial Partner) does not
fulfill duties required as described in Article III, that Partner will be
notified in writing of the meeting at which removal from office will be
discussed and voted upon. At that meeting, the Partner may present statements to
the Partnership in an effort to retain the position.
Removal will occur if so voted by majority of the Partners
present at the meeting or voting by appropriate proxy.
Article V. Guests
Partners may invite guests to any meeting of the Club.
Article VI. Contributions
Partners will make a minimum monthly investment of at the regular monthly
meeting. Partners may also make optional additional contributions in any increment(s). Regular monthly
contributions normally collected at meetings are due prior to the scheduled
meeting for any planned absence, or by the end of the third day after the
meeting from anyone who was unable to attend that monthly meeting due to an
emergency or illness. No Partner's capital account shall exceed twenty percent
(20%) of the capital accounts of all Partners.
Article VII. Standing Partners’ Administrative Costs
Each Partner will contribute yearly (at the Club's
anniversary month meeting) to cover administrative costs of the Club. Any
Partner maintaining a custodial account will pay yearly to cover
administrative costs for the minor Partner.
Article VIII. New Partners’ Administrative Costs
New Partners must pay yearly administrative costs
at the time of joining if membership occurs within six months of the Club’s latest
anniversary month meeting; otherwise, they must pay .
Article IX. Transactions and Valuation Statement
§
Transactions: Buy
or sell actions shall be made by majority vote of the Partners present at the
meeting. Any vote for such transactions will be put in the form of a motion
after membership discussion at a regular meeting. Transactions between meetings
cannot be made by polling Partners. If a vote is necessary prior to the regularly
scheduled meeting, the Presiding Partner will call a special meeting of the
membership.
§
Valuation Statement: The
Financial Partner shall prepare a monthly statement of liquidation value,
effective the before the regularly
scheduled monthly meeting.
Article X. Book of Account
The Book of Account shall be a complete set of accounts,
consisting of assets, liabilities, individual Partnership accounts, and appropriate
revenue and expense accounts. It shall use the double-entry accounting system.
Article XI. Annual Accounting
§
Each calendar year, a full and complete account
of the condition of the Partnership shall be made to the Partners. The annual
accounting shall take place at the Annual Meeting for the preceding year.
§
All financial transactions shall be reviewed
semi-annually by a Partnership Audit Committee.
Article XII. Bank Account
The Partnership may select a bank for the purpose of
opening a bank account. Funds in the bank account shall be withdrawn by checks
signed by any Partner designated by the Partnership.
Article XIII. Broker Account
§
All securities shall be purchased in the name of
the Partnership.
§
All securities shall be kept in the Partnership
safe deposit box or with the broker.
§
The Presiding Partner and the Assistant
Presiding Partner shall be the custodians of all securities.
In Witness thereof, the Partners have set their hands, the
year, and the date below:
Partner (Printed Name)
|
Partner Signature
|
Date Signed
|
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