Jeff Cooley on How to Identify a Venture That is Likely to Succeed

The Best Ways to Find a Sound Business Investment

Investment opportunities involve varying degrees of risk, so it is vital to have a comprehensive understanding of both long and short-term financial objectives. An individual’s decision to take a fraction of their hard-earned savings and invest it in a business should not be taken lightly. After all, for many people, a wise investment (or set of investments) can make the difference in whether they send their children to a reputable college, pay off their mortgage quickly, or spend their retirement years in comfort.

So, upon deciding to invest, where to begin? What are the best criteria on which to judge potential investments? Each company has its unique strengths and weaknesses; however, it is crucial to perform extensive research before deciding on an investment opportunity. Entrepreneurial investor Jeff Cooley has more than thirty years of professional experience. He takes the time to provide a few guidelines that ought to be helpful for any novice or would-be investor.

Determine a Goal

Before any research is conducted, an investor must determine their goal. The goal of the investor dictates what type of investment strategy ought to be adopted, as well as its criteria for success and failure. In many cases, merely determining a goal will preclude investments in certain sectors of the economy and, consequently, entire swathes of companies.

For instance, if the ultimate goal of an investor is a steady, long-term return on investment over the course of a few decades to secure their financial position after retirement, then a low-risk investment strategy should be adopted. This investor will likely lean heavily on stable sectors of the economy, such as banks, insurance companies, or health care providers. This investor will not bother looking into a company whose primary business is dealing in, for example, cryptocurrency.

However, if the goal of an investor is a speedy return on investment in order to finance the purchase of a beach house or luxury vehicle, then a high-risk investment strategy is likely the way to go. This investor will likely focus on more volatile sectors of the economy, such as energy producers, commodity firms, or technology companies. This investor will not have the patience required to wait for a return on money put into, say, a utility company.

Perform a Quantitative Analysis

Once an investor’s goal is fleshed out, an investment strategy is put in place, and criteria for success and failure is established, the next step is research states Jeff Cooley. Performing a quantitative analysis on any potential candidates for investment will lead to a more informed decision for any investor. What it means, essentially, is crunching the numbers. Obtain copies of the company’s key financial statements, including cash flow statements, annual reports, and 10-K filings. Check their quarterly projections, stock market history, and current market share. Identify the company’s chief competitors and assess their position. All of this information, coupled with the larger investment trends in the industry on the whole, should give an investor a good idea of the company’s health and potential for growth.

Perform a Qualitative Analysis

A qualitative analysis is sometimes thought to be an ‘old-school’ method for determining which companies are good candidates for investment, but it is still a valuable exercise. Performing a qualitative analysis is something akin to detective work. If there is a company whose industry is in line with an investor’s goals and investment strategy, and its numbers check out, it might be a good idea to get to know a little more about it. How is the company structured? Does it have a niche in the market? What are the personalities and management styles of its most important officers? Does it have a reputation within its own industry? Answering these questions will provide valuable insight into precisely what kind of a firm an investor’s hard-earned savings are being trusted with.

According to Jeff Cooley, when in doubt, an investor should find out everything they can before taking a financial stake in and quite possibly pegging their future to a firm. Given his extensive industry experience, he claims that smart investors are not cavalier with their money, regardless of their level of expertise or how much wealth they possess. This basic principle ought to be applied every time an investor contemplates buying even a single share in a company.

Jeff Cooley is veteran businessman and entrepreneurial investor with more than thirty years of accumulated executive-level experience in the private sector. A graduate of Central Michigan University, he spent the early portion of his career in education before making a change and following his passion for business—what would ultimately be his life’s calling.

Jeff Cooley began his business career as a marketing strategist for La-Z-Boy Incorporated, but soon left to take a position on the senior marketing team at Calphalon, a noted and successful kitchenware concern. There, he quickly rose the ranks, being promoted to president and CEO of the company in 1990—a position he would hold until 1998, when Calphalon was acquired by Rubbermaid. After the merger, Jeff emerged as the global president of Rubbermaid’s kitchenware division.

These days, although technically retired, Jeff Cooley spends his time working as an entrepreneurial advisor to several small companies. Additionally, he is the owner of several Limited Liability Corporations, as well as the president of the Toledo, Ohio based firm MLMC. He resides in Toledo to this very day.