If you are looking to invest in a Successful Islamic Business, then you should follow below guidelines. These guidelines have been drafted by experts at our company, with years of direct experience in business and seeing all kinds of pro’s and con’s in business:
1. Intention: First and foremost thing is a good intention. If you have doubt’s on your investment, please do not invest. As the doubt is root to all evil in Islamic Business and trust on Allah and then on the business manager is the root to success in Islamic Investment. You should invest with a good intention, that “InshaAllah Allah ta’ala will give barakah in my investment and I am ready to accept whatever profits or losses occur in my investment and I will pay my zakat on the earnings if eligible and would use a portion of my earnings for the benefit of our ummah”
2. Patience: Second important thing is patience. You have to understand that the investments are for the long term and a lot of patience is required to earn reasonable profits. You have to wait for at least one to three years to start seeing good returns from the company. You continue to get profits on quarterly, 6 months or yearly basis as per the returns option selected. However, if you do not get returns in any month, it could be absolutely normal. You have to be very patient in this scenario without pressurizing the company for returns as it is purely Halal.
3. Investment Planning: You have to plan for a long term investment and also plan a good amount of investment. An ideal duration is a minimum of one year and above. And the ideal amount of investment is above 2 lakhs and the maximum amount is that much which doesn’t affect your day to day living from your savings. For example, the amount you invested should not affect your life planning like buying a house, car, marriage or an emergency operation.
4. Spreading Positivity: Once you get associated with the company, it is your responsibility to spread positivity about the company. It helps the company sustain and grow. You have to understand that profit/losses are part of the business. You may experience loss or delay of payments during the tenure of your lock-in period. That really doesn’t mean you start spreading negativity about the company. Business itself means profit and losses which is rounded off at the year-end.
5. Understanding P&L Statement: While filing the income tax, the department asks for a P&L statement, which means Profit & Loss Statement. P&L statement is made for each quarter, which itself is to understand whether the company/individual has made profits or losses in this period. The income tax department asks for P&L statement and not just income (or profit) statement because there is always ample opportunity for losses in business/individuals. It’s not that we are bound to make losses, but as a wise investor, you should understand what temporary losses are and learn to be patient.
6. Earnings: The first question which comes to mind is about monthly or yearly earnings. Precisely, we really can’t guarantee what could be the earning and this is what investment makes halal. For example, in our company case: Whatever is the earning, we give you 70% of it and the company takes 30% of the earnings. We keep you posted every month.