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business investiment in portugal

December 12, 2020

Things to Keep in Mind When Making Business Investment in Portugal

By trivial chapter| Immigration Visa


Today, almost everyone wishes to multiply their money and create a second source of income from themselves. People save a lot of money over the course of many years and later put it into various investments that they can reap at a later stage. This is where investment in private companies also comes and is a very lucrative provision for many; however, it is not easy. There is a high amount of profit involved but it comes with risk, long term investments and you might also need to do a lot of work upfront in order to achieve the success that you intend to enjoy at a later stage. If you are someone who is planning to go down that road and do business investment in Portugal, the listed below are some important things that you must consider before investing.

Do Speak with the Head of the Company

In order to be certain that you are investing your hard-earned money at the right place, it is vital that you speak with a person who has completed inside knowledge of that company. So it is preferable to speak with the CEO or any other head, if possible. Meeting the team is not enough because the head can give you better insights and ideas related to the company’s future plans and how they aim to reach a particular pedestal. It will also give you an insight into his vision and ability to lead the team and execute the set goals.

Diversify Your Investment Plan

You must have heard that one should never put all its eggs in one basket and this saying is especially true when you are planning to make investments. Most of the investors invest their money in just two or three companies thinking that they are making the right decision; however, in Portugal business investment, the investor must have seven to ten investments. This course of action can help the investors to reduce risk and increase their odds of success, which is of great importance because, at the end of the day, you would want your money to grow and come back to you.

Guidance of an Expert Is Vital

If you are going into an industry that you don’t have much experience or knowledge about, it is highly advisable to get the help of an expert who can guide you in the right direction and also help you understand the jargon of that industry. You can consult a professional investor or a company that specializes in this area. If you know someone or get in touch with someone through your circle would be great. If not, then you can always take the help of the internet to come in contact with one such person or company.

Customers are the Key

Before you go ahead with your investment decision, do try to get your hands on the customer data. The more knowledge you have about them and their buying patterns, the better. This is vital because there are three types of customers: promoters, who are loyal to a particular brand and help the company with its growth. Then comes the passives, which are indifferent and get easily attracted by the competitors. Lastly, there are detractors, who are unhappy with the company and criticize actively. The more promoters a company has, it can enjoy more growth and profit in the coming time.

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Focus on Company’s Growth Pattern

You must know about the company that you are investing in, how it is growing and will grow in the future. See how it has been making its mark in the market, among customers and stakeholders. If there’s organic growth, it is of much more value than buying it. To understand the growth of the company, you will need to dig into the financial statements, balance sheet, income statements, and cash flow statement of the company.