Business ownership is not just about good ideas and working hard; it takes financial savvy to stay afloat and ahead. Whether you are just getting started in your business or looking for new ways to infuse some cash, take a look at these wise investment suggestions for success.
Don’t spend a lot upfront.
There are certainly cases where a lot of capital is needed to start a business – particularly if inventory is expensive. In almost every case, however, there are business “wants” that can wait until revenue starts rolling in. Consider renting office equipment instead of buying it and look for a smaller, lower-rent storefront/office that works short-term. It’s great to envision what you want your business to look like in the future – with all your wants filled – but it’s a smart investment to just get by when you’re starting out.
Consider non-traditional investment options.
Banks no longer hold all the cards when it comes to business investment; if you are looking for money to get started, or need some cash for growth, consider crowdsourcing, angel investors, or business credit cards. Some of these options are faster than waiting to hear back on a traditional loan, and others amount to much less paid out in interest. In the case of crowdsourcing and business credit cards, no one earns any control over your business because money was lent or donated. Think about what you must give up in return for the cash you need. Money? Control? Then decide which lending option makes the most sense for what you want to do with your business and what you can afford to give up in return.
Invest outside your business.
Once you establish a revenue stream, go ahead and diversify it. You’ve probably heard the phrase “don’t put all your eggs in one basket” and that’s doubly true for business. While it may seem advantageous to invest every earned dollar back into your business and its growth, you should consider other places to put some of that revenue. Stocks, bonds, money market accounts, real estate and even other small businesses can be smart spots to put in some of your business cash and watch it grow. Like any investing, it’s always important to do your research to ensure your best shot of making a profit.
Hire the right people.
If your business is even slightly successful, you’ll reach a point where you simply can’t do everything by yourself. This is when having a strong support staff can make you more money in the long run. Research competitive wages in your industry and location and then when you find people who are a great fit for your business, show them how much they are needed through salary increases (even small ones feel big to employees) and an overall positive business culture.
Just like a gambler researches simple slots tips and tricks, a business owner should assess risks carefully. Investing wisely doesn’t always mean doing the same thing someone else already did successfully; it takes careful analysis of your individual circumstances and then calculating your best investment moves from there.