Ask the expert: Look before you leap into business chance

Investing in a new business can be a great opportunity, but are you sure you know all you need to know about it? Dr MARIE WILSON, head of management and employment relations at the University of Auckland Business School and a veteran of 20 years in corporate management and small business, offers some helpful ideas.

Q: A dear friend of mine who is also a very bright bunny wants to start a web-based information service and wants me to buy in. While the idea appears sound, there's been so much talk about dot-bombs that I'm stalling. Heart says yes, head says no. Advice?

A: What does your wallet say? Can you think of the money as possibly not coming back and still having the "bright bunny" as a best friend? It's not just high-tech that is risky: many new business ventures sputter and/or die.

Even the successful ones may not bring exciting returns for a long time. But entrepreneurs often depend on friend and family financing to get started.

If I were you, I would ask for a detailed business plan and analyse it from the most objective investment perspective that you can; consult any and all expertise in your network and consult business advisers.

Have as clear a picture as possible. You should advise your friend to do the same. A good business plan should hold up to scrutiny.

If it's still a go, be clear with yourself and your friend what your repayment expectations are.

Many a friendly investment has soured when an emergency arises for the friendly investor whose life savings are now tied up in a fledgling venture.

And whatever you agree, get it in writing.

Q: As a departmental deputy, I am booked to go on a five-day residential course in leadership. I was looking forward to it, but as the date gets nearer I'm getting nervous. Other staff who have done it tell me it's very tough and intensive. They won't go into details, though. Am I being wound up?

A: Courses in leadership often require you to really reflect on both your values and your capabilities, and to get feedback from others.

It can be very challenging to get detailed feedback, especially if it challenges your views of your leadership. Go to the course prepared for an opportunity to think about yourself, your career and your future and to develop new insights and skills.

When you come back, you'll have a shared base of experience and you'll probably find that you can discuss it with others who have gone as well.

In the meanwhile, you can be happy about being singled out for development.

Q: I know jobs aren't for life any more but is it the done thing to career-hop? I'm a junior lawyer at the moment but there are some other things I would really like to do, a few of which would require some retraining.

My friends and family think I'm crazy to consider moving around after all the time spent at law school, but I'm really paranoid about getting stuck in a rut.

A: Research suggests that most people will pass through five to seven careers in a working lifetime. Some of these changes aren't huge, but they may reflect a different emphasis in a given field.

If your working lifetime is up to 60 years, then you've still got plenty of time ahead of you for both career change and retraining.

If you are enjoying your current work, then think about what you can learn in that environment, as well as devoting some time on a regular basis to trying out things that might interest you in the future.

While jobs aren't for life, as you point out, that doesn't mean that job-hopping or lots of changes now are the alternative.

Your best options long term stem from actually reaching professional competence in an area, so that it is something that you can build on and integrate into new career directions throughout your working life.

* E-mail your questions for Dr Marie Wilson to answer.