Thoroughly impressed by the turnaround time to the search suggestion made just today, a positive testament that things can be done and that the team is on top of the game...
My idea stems from spending countless hrs reading through posts in the business forum here at JF, the local media and from a general perspective on what is happening in our region.
Two things come up: 1). Need of capital and 2). Need of an investment vehicle.
Many a times a forum member will come to request ideas on how and where to invest their savings, the majority of course are looking at a short term option that will also occupy their time in that the money is invested in a business they can manage and run on a daily basis. Taking this further, there is or ought to be another lot who could be potential investors if only a viable vehicle can be found to which they can entrust their savings to earn a long term return from the investment.
With the same breath, there are those businesses that are struggling to acquire meaningful financing from the mainstream money markets and resulting in restricted growth of their operations, Others could have viable business propositions but luck the collateral stipulated by the current banking regimes mean their ideas will never see the light of day.
I understand however that there is a stock exchange in operation but I will assume the breath of potential companies is very narrow and the target for the said solution is quite separate. Read in this forum of frustrations on the stock value of CRDB hence that tells me volumes on how that sector is operating.
My preposition:
A solution is needed that can bring about ease of access to financing and access to viable investments.
A potential investor will have access to business information online an using the opt-in/opt-out analogy, register their interest in doing business with that potential entity. The investor will on their account register their potential investment in monetary terms and be able to manage their portfolio of businesses they have invested in.
A potential business owner can register their opportunity offering details of operations and shares being put out to the market. The information here having been legally checked to ensure that it is "kosha" and there being a legal recourse in case of any issues arising from this offer. Legal elements of this also need to be in place where potential investors and potential businesses will need to be vetted to ensure all legal requirements are met.
scenario A
User: Kotin Karwak
Potential Investment: 1,000,000TSH
My Portfolio
Business A: 125,000
Business B: 75,000
Business C: 150,000
Business D: 200,000
This shows that I have invested time to learn of the 4 businesses from my own research and with the guidance of the members who are also investing in the business through the rating system. I am spreading my risk by investing in many businesses. And through my account, I can gain understanding on a set period of how the investment is performing. In all these businesses, I am a strict investor hence no direct involvement in daily running, but have a voting power equivalent to the investment made and on investment made to perform due diligence about this investments.
scenario B
Business: A
Investment Amount: 25,000,000
Investment Committed: 17,450,000
Investment Management: Internal
Location: Dodoma
Business Area: Housing/Real Estates
Legal: XYZ Advocates
Accountant: FEG
Scenario C
Business H
Investment Amount: 100,000,000
Investment Committed: 0
Investment Management: Pius Management
Location: Dar
Business Area: Medical Procurements
Legal: To be appointed
Accountant: Ninte Accountants
Why this approach.
-Spread the investment risk by having opportunity to access many business opportunities.
-The business arena can see potential investment capital that can be harnessed from members, hence could guide many in their business operations.
-The rating system since it will be exclusively maintained by the investors can be a barometer of where to place ones' investments, it will include all necessarily materials that should be public info on the businesses seeking investments.
Monetization of the solution:
The monetization of this can take several forms but believe for the investor and the businesses seeking investment, there will need to be a charge for the service to run the operations especially where the unit is the one tasked in managing the investment portfolio.
Web Application
Dashboard/Main page
Login
Account Management
to include beneficiary management.
Portfolio Management (at account level)
E-mail facility
Rating facility
Believe many more refinements are requiremd but that is the big picture.
Kotin Karwak
