Running your own business means you have to put your money into it. This makes you an investor in a way and the only way to succeed is to follow the rules that go for every investor out there. The most important rule of them all is to always diversify your portfolio and protect your financial situation in case something goes wrong. Therefore, investing in something other than your business really is a good idea but the question is – what to invest in? Listed below are the top five investment options every small business owner should consider.
This is the most common investment method you’ll come across. It includes buying shares of companies and selling them for profit. The process is pretty straightforward and you can do everything from the comfort of your home, making stock the perfect option for busy business owners. If you decide to do it, bear in mind that there’s no point in investing in companies in the same industry your company is in. If you want to really diversify your portfolio, going after other sectors is a must. Even if it means investing in shares of companies you don’t know much about. Make sure you read stock market investing guides on the web before you get started.
Another extremely popular investment option for small business owners is real estate. All you need to do is look for properties worth investing in and buy them. Once you do that, you can either rent them, wait for their prices to increase and sell them or you can just remodel and sell them for profit. Real estate is less risky than investing in stocks but it requires you to get involved a bit more. For example, if you choose to rent your properties, there are some tasks landlords are responsible for such as dealing with maintenance and looking for tenants.
Gold (and other precious metals)
Gold has always been one of the most popular investment options out there, especially when it comes to portfolio diversification. No matter what happens with the economy, gold and even some other precious metals are guaranteed to retain their value. In fact, gold is rising in value every year and now seems to be the perfect time to buy it. If you’ve decided to invest in gold, it’s necessary to find a deal and buy bullions and coins. Just don’t forget that you’ll need some place to store your gold before you decide to sell it.
Art may not be the first thing that comes to your mind when talking about investment opportunities but it makes a lot of sense. Quality art pieces only grow in value every year and if you’re into art, buying some of these pieces and selling them for profit can turn out to be an amazing idea. It’s an extremely fun way to invest your money and you can actually use the pieces you buy before you decide to sell them. For example, you can showcase them in your home or even in your company’s headquarters. Just remember that investing in art isn’t recommended if you don’t know much about it and you don’t have enough free time to do some research.
Investing in the future is always guaranteed to work. As a business owner, you’ll have to retire at some point and it’s critical to ensure you can enjoy your retirement to the fullest. This is exactly why putting your money into retirement funds is an amazing idea. There are different types of retirement funds and it’s your job to determine which type suits your needs the best. For example, some funds act as savings accounts and allow you to withdraw money if necessary while others are solely for retirement. The money you save in a retirement fund can also later be used to support your business.
Investing in things other than your business is a great way to ensure you’re left with enough money even if something happens to your business. In fact, it allows you to make some extra cash and use it to keep your operations running during rainy days.