Before any money is invested, the club should decide what kinds of investments the club will consider. For example, if the club wants to invest in growth stocks only, a simple policy statement should be developed, indicating what types of stocks the club will consider. The investment policy should be the driving force for the group. Another reason clubs break up is a lack of confidence if the club is not making money. Financial accounting should be computerized and therefore easy to handle when members choose to leave the club.
Some clubs agree to give the exiting member cash or transfer one or more stock certificates.
One of the first things clubs should buy is club accounting software. Club accounting software is tailor made for handling members' accounts, even when members do not contribute equal amounts in the club. Access to a computer and club accounting software are must-haves when starting an investment club. When members start a club, they incur certain startup costs like buying club accounting software and study materials, and opening checking accounts. These costs are usually distributed among the charter members.