The number of investment clubs is on the rise, but there is a secret to keeping a club alive and prosperous in the current market. It is no longer enough to just pool money. The investor who joins a club simply for that purpose is sure to fail, probably bringing the club down with it. In every club that is successful, it is assured there is an “investment club education” plan in place as part of the club’s agreement.
A good education plan will define the following:
1. What each member is interested in learning about the market
2. What goals each member has to further their education
3. What steps will each member be responsible for to reach those goals
4. How the acquired knowledge will come back and benefit the club
5. How to implement the acquired knowledge into the goals of the club
6. Plans to continue education and growth
7. Annual assessment of educational goals and implementation of knowledge
To help members, it is a good idea to set up “accountability partners” made up of no more than 3 people in a group. Partners can set up times to discuss problems, questions, things they’ve discovered, etc. Accountability meetings should be weekly at a set time, via internet, telephone, or in person. They should be concise and to the point, lasting only 10 or 15 minutes. Each person should report on the following:
* Successes made toward goals.
* Problems/questions the other partner(s) can help with.
* Steps to be taken in the next week toward end goal.
A timeframe for the length of the accountability partnerships should be set up, preferably lasting no longer than 8 weeks. At that time, new groups should be formed. This allows for the members of the club to get to know each other better, making for smooth overall running of the club.
