It is no longer news that global business will no more remain the same. Economic, political, and social mindsets have shifted dramatically just halfway through 2020. Business and individuals alike are reevaluating their priorities and devising new strategies in almost every area. It is now more important to invest according to a greater purpose. In the course of the global crisis, some investments came crashing down while others stood tall, strengthening every day. This emphasizes that investments have surpassed “just maximising profit” and is focusing on the values that back them up. When your investments are aligned to a value-adding purpose, it provides a longer-term view and a longer-term fit with your vision. Here’s how to make Purpose-driven Investments:
- Ask the right Questions: Investors should know who they are, what they value and why and derive their investment strategies accordingly. Purpose-driven investments are more than avoiding morally questionable activities at the cost of profits. Recently, there have been many sustainable and impactful investment opportunities enabling investors to earn well by doing good. Investors should reflect on why they ought to invest in a particular purpose? Why they ought to choose one deal over another?
- Create a Purpose Statement: The answers to the questions above are powerful enough to be the driving force of all investment decisions. When the purpose is clear, investment time frames will be easier to determine and indecisiveness will be minimized.
- Evaluation: Purpose-driven investments do not mean sacrificing profits or taking on additional risk. However, one may have to forego short-term gains for longer-term, value and positive impact. These decisions have to be regularly evaluated to ensure continuity of vision, values and purpose even as succession takes place. This way, it is much easier to expand these investment considerations.
