For most business owners, the truth is going to be that most of your time and money is going to be tied up in running your business. However, in order to secure your future and make sure you have some financial protection in the event of things going south, you want to diversify where your money is tied up. Here, we’re going to look at where you might want to consider investing outside of your own business.
Trading in the markets
There are a few markets that you could get involved in trading in, such as individual stocks, cryptocurrencies, forex, and the like. There’s no denying that there can be a lot of money to make in stock trading and in other markets, but it’s also worth acknowledging that there are significant risks, as well. Making use of robo-advisors or stockbrokers (if you have the budget) can help you make some sense of the market but keep in mind that the risk is always there, no matter who is helping you.
Getting involved in mutual funds
You can trade individual stocks and cryptocurrencies on your own if you like, but if you’re not the most market savvy, then you might also want to look at getting involved with mutual funds. These are funds of multiple people like you that are handled directly by companies whose direct responsibility is handling them and trading assets within that fund to the best interests of the people who have money in the fund. It does take some of the flexibility out of trading on your own, but that comes with a little more security, too.
Moving up the property ladder
There are plenty more opportunities to make money in real estate, as well. You might think of real estate as the prospect of buying houses to rent or to flip, but a business-minded individual might be able to spot good opportunities when it comes to commercial real estate, as well. The rents of commercial property tend to be a lot higher than you would see in residential real estate. What’s more, with your knowledge of what tends to matter to business interests, you might have the keen eye that can help you spot good commercial real estate opportunities before others do.
Put it into what you know
If you want the best chances of successful investment, then it’s often recommended you put your money into areas that you know about. You might know about running a small business, so you may want to consider investing in other small businesses. There are plenty of small peer-to-peer lending platforms with business owners and entrepreneurs who are looking for investors to give them their break, either for a direct return or for a share of the company. Angel investing is how some of the richest people in the world made their fortune.
You might make your living running a business, but you’re more likely to make your wealth by making the right investments. Hopefully, the ideas above give you some notion of where you can start.