For investors who have heard about money clubs and become intrigued by the notion, but cannot find a club in their area, they might be interested to know that it is not that hard to start their own money club. The problem is that it is not that easy either. While it may be simple to gather up a few friends and collect some money in a hat for investing, it takes a certain amount of planning before a money club can become a successful venture. The following highlights some of the key steps that many in the investing world consider to be the cornerstones of forming a successful and smoothly operated investment club.

Numbers

It is best to keep the number of members in a club below twenty, with a minimum of ten. The danger in having less than ten members is that it may translate to insufficient funds for investing. Having too many members can make it physically difficult to hold meetings because of the shear space needed to accommodate a large group. Large groups can also make meetings lengthy or lead to general disorganization.

Members Types

Start by asking a few friends or business acquaintances if they might be interested in perhaps getting together and discussing the possibilities of starting a money club. Ask them to bring a friend or two who also may be interested. Remember, just because the initial showing is large does not mean all will buy in, so to speak. So, do not worry about large numbers at this point, just generating interest.

Novice or Expert

Do not be afraid to invite friends that have no experience in the investing field and do not be discouraged if all those that attend the first meeting are very new to investing. It is important to remember that a money club is as much a learning experience as anything else. A group of ambitious novices can pool their skills together, learn a great deal, and become very successful. Many money clubs have done just that.

Business

Decide on a group investing philosophy. Determine what officer positions will be up for election, and pick a meeting time and, if possible, a consistent location. Finally, be sure to take care of any legalities concerning the group, such as registering the group with the SEC, if necessary, and be sure to talk to a lawyer to draw up documents that will protect each individual of the club in case of unforeseen future conflicts or scenarios.