MBA Investment Club

Next Step Recommendations

November 23, 2003

 

 

We are coming up on our first year as a club and we have had some learning and growing experiences as a team over this first year. In order to take the club to the next level we need to consider the following opportunities and adjustments.

 

• Cost Reduction – To maximize profits we must continue to be conscious of our costs
• PO Box – Move mail to US Postal service box to reduce monthly box fee from Mail Boxes Etc.
• Online Trading Provider – Consider making move from Ameritrade to Scottrade to lower our per trade cost from $24 per trade (roundtrip) to $14 per trade (roundtrip) assuming market orders only. Must consider use of  limit and stop orders and how they impact our strategy.
• Checks for checking account – to make fee payment come from the group funds rather than on a reimbursement basis. This creates a sense of security for an incoming member to join the group (they will not have to ‘trust’ our accounting practices on BIVIO.)
• Create check writing position within current structure.
• Newcomer Packets – To increase our asset base, we should create a system complete with a written packet of information, application and levels of involvement. This allow potential prospects understand what we as a group of investors believe in and give them access to join at a level they are comfortable.
• Application
• Brochure
• By laws
• Entry Levels – Suggested entry levels – Benefits of each level TBA
• Jr. Investor – 25% buy in of founders original investment, no degree required
• Investor – 50% buy in of founders original investment, BS or BS required
• Partner - 75% buy in of founders original investment, MBA required
• Founder - 100% buy in of founders total investment, MBA required
• Club Website for distribution of information and to market to potential new investors.
• Consider 10% of profits designated as a charitable donation to an organization determined by founding members.