Don’t invest unless you’re prepared to lose all your money.

These are high-risk investments and you are unlikely to be protected if something goes wrong.

Risk summary for non-readily realisable securities which are shares:

Last updated: 15 April 2024 | Estimated reading time: 2 min

Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk!

What are the key risks?

1. You could lose all the money you invest

If the business you invest in fails, you are likely to lose 100% of the money you invested. Most start-up businesses fail.

2. You are unlikely to be protected if something goes wrong

The business offering this investment is not regulated by the FCA. Protection from the Financial Services Compensation Scheme (FSCS) only considers claims against failed regulated firms. Learn more about FSCS protection here.

Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA-regulated firm, FOS may be able to consider it. Learn more about FOS protection here.

3. You won’t get your money back quickly

Even if the business you invest in is successful, it may take several years to get your money back. You are unlikely to be able to sell your investment early. The most likely way to get your money back is if the business is bought by another business or lists its shares on an exchange such as the London Stock Exchange. These events are not common. If you are investing in a start-up business, you should not expect to get your money back through dividends. Start-up businesses rarely pay these.

4. Don’t put all your eggs in one basket

Putting all your money into a single business or type of investment, for example, is risky. Spreading your money across different investments makes you less dependent on anyone to do well. A good rule of thumb is not to invest more than 10% of your money in high-risk investments. Read more about it here.

5. The value of your investment can be reduced

The percentage of the business that you own will decrease if the business issues more shares. This could mean that the value of your investment reduces, depending on how much the business grows. Most start-up businesses issue multiple rounds of shares. These new shares could have additional rights that your shares don’t have, such as the right to receive a fixed dividend, which could further reduce your chances of getting a return on your investment. If you are interested in learning more about how to protect yourself, visit the FCA’s website here.

Please find the PDF version here.

Tracey Shirtcliff

CEO & Founder, Scope Better

Culture, Delegation & Motivation: The building blocks of success

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SUMMARY

In this episode, Mark Pearson and Tracey Shirtcliff explore the entrepreneurial journey, discussing the challenges, influences, and experiences that shape business success. Tracey shares insights from her corporate background, emphasising problem-solving, building strong teams, and fostering company culture.

The conversation covers leadership, trust, ambition, and the importance of delegation, with Tracey also revealing her daily habits and inspirations. They highlight the importance of mental and physical health, including biohacking, and discuss the current entrepreneurial landscape, encouraging action even in difficult times.

Sound bites we loved!

"The zest for life and the energy to solve a problem, I think is probably what drives me. I love a problem. I like solving them just as much as I like getting them."

"What is for you, won't go past you."

"I don't call it fail, I call it pivot."

"It's like when two heads come together, it's a third person entering the room. It's really powerful."

 "I think it's an amazing thing to do, to build a business, to have opportunities for people, to see people grow, to advance people."

"A good idea is timeless."

Takeaways from this episode

  • Tracey Shirtcliff is the founder and CEO of Scope Better, a B2B SaaS platform.
  • Entrepreneurship is often learned from influences, such as family.
  • Navigating challenges is a crucial part of the entrepreneurial journey.
  • Corporate experience can shape decision-making and direction in business.
  • Building a team requires understanding individual strengths and weaknesses.
  • Company culture is essential for team engagement and productivity.
  • Ambition should be big enough to inspire and challenge others.
  • Delegation is key to managing a successful business.
  • Identifying weaknesses is as important as recognizing strengths.
  • Entrepreneurship offers opportunities for personal and professional growth. Founders have a significant impact on their teams, even without direct interaction.
  • Trust is fragile; one bad experience can ruin a relationship.
  • Starting a business in challenging times can lead to greater success later.
  • Daily habits and routines are crucial for maintaining focus and motivation.
  • A good idea is timeless, and action is essential for success.
  • Vitamin D and magnesium are vital for health, especially for busy entrepreneurs.
  • It's important to learn from failures and pivot quickly when necessary.
  • Building relationships with potential acquirers can lead to successful business sales.
  • Entrepreneurs should embrace risks that larger companies may avoid.
  • Maintaining physical health is essential for sustaining mental health and productivity.

More Episodes:

Fuel Up | Nina Briance (Cult Mia) From Banking to Boutique: Building Cult Mia and Fashion's Future
Fuel Up | Tracey Shirtcliff (Scope Better) Culture, Delegation & Motivation: The building blocks of success

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