As a business owner, you must ensure you are looking after your finances and that you are well placed both professionally and personally to help you stay afloat and maximize your potential.
Investment can help you to diversify your income and give you the best chance of building a nest egg when the day does come when you hang up your hat. As a woman in business, navigating the tricky waters of finances and giving yourself the best chance of success personally and professionally can be extremely beneficial. As one of the 250 million female entrepreneurs worldwide, there is always a lot of pressure on the heads of successful women, and living up to that pressure can be challenging and even at items unnecessary.
With this in mind, how can you support your business goals and ensure that you have suitable investments in place? The following are significant areas for investment for business owners.
Real Estate
Commercial real estate is often considered a better investment than residential real estate. As the commercial world is constantly moving, changing, and expanding, there is always the demand for commercial properties to be let for new and upcoming businesses. With this in mind, if you have the funds and are looking for a long-term investment and potential for growth, then commercial property can be a better investment for you. Finding the best commercial real estate for sale means spotting an opportunity to grab a bargain and turning that into something that generates a viable income year after year.
Growth Stocks
Growth stocks promise high growth and high returns and are often companies such as tech businesses that have the potential to grow exponentially; these are currently Tesla, Shopify, and Etsy, to name a few of the more recognizable brand names. However, high growth can come with increased versatility, meaning you are at greater risk of losing money. You need to research the company as much as possible and be confident you are making the right decisions.
Stock Funds
Stock funds are an alternative to buying individual stocks and are great if you need more help or don’t have the time or expertise to choose individual stocks yourself. Stock funds are typically a collection of stocks based around one industry or theme and are managed by a company. You will likely pay a small fee for using this service, but you can be more aggressive using this option as it isn’t as risky as high-value growth stocks. That being said, there is still some volatility included, so you should be aware that your investments are still at risk of losing money as much as they are at growing too.
Angel Investor
An angel investor is an investor who helps small businesses get up and running in exchange for a minority stake. You can choose the type of business you want to invest in on a personal level and how much you are willing to invest. The business owner will determine what they will use the funds for and how they expect them to help the business grow. In return, you get a stake in the company, typically 10% to 25%, to help you recoup your investment and generate an income as long as the business is running or for your agreed terms with the owner.
Conclusion
Investing as a small business owner is a necessity. How you invest needs to be a carefully thought out process that benefits you and not something you do simply because someone told you to. Always research the available options and assess your risk tolerance to help narrow down the investment options.
