The unfortunate truth is that the majority of small business startups don’t make it through the first few years of operation. Relying solely on your small business investments to provide financial stability for your future is not wise.
Your should always have more than one source of financial provision for your future. Just as you work to grow your business, work to grow your personal wealth by making smart investment decisions.
Invest in the stock market
Find smart ways to invest a piece of your “pie” in the stock market. If you’re a beginner in terms of your knowledge of the market, there’s only one thing that can change that fact. Dig into your investing options on the stock market, and set up a long-term passive income.
You may choose to invest in a specific industry. For example, the oil and gas industry is always a money-maker.
Consider investing in mutual funds. A mutual fund spreads your investment across a wide array of different companies, so you get instant diversification.
Invest in real estate
If you have a decent credit history, try your hand at real estate management. You could start by simply purchasing one rental property, and making a decision whether or not to expand from there.
It’s tempting to get into “house flipping,” but the amount of work necessary may make it much harder to properly manage your business. Keep it simple, and purchase turnkey to rent.
Invest in your retirement
As a small business owner, you are your own retirement. Investing in your retirement is an absolute necessity to assure comfort for your future. Start by learning what an SEP IRA can do for your retirement.
There is also the choice of opening up a Roth IRA. The main difference is the amount of money you’re allowed to contribute each year, with the SEP IRA being the highest sum.
Invest your spare income
It’s an ideal situation when your money simply makes more money by existing. Invest your spare cash, or make sure you store it in an account that will do it justice with the interest accrued. Just make sure you don’t let any sharp looking bank reps talk you into spending your funds on something else.
Invest in technology
The huge role technology plays in every aspect of modern society means that you can’t really go wrong on an investment in the industry. The tech industry will be a hotspot for investors for many years to come, and you should want a piece of the action.
Companies like Apple and Microsoft are not soon to be out of commission. Digital technology and mobile technology are also extremely favorable investment decisions.