Investment tips for Small Business Owners
by Startacus Admin
Small business owner and thinking about how to make your money work better for you? These tips on investment should certainly help
.jpeg)
Every small business owner has as a goal to be as successful as possible. However most focus on putting their all into their business, neglecting an important part of this equation – yourself.
To achieve real success, it’s important to invest surplus cash into your business but also yourself. Now that your business is on track, take the time to make money work for you; here is some advice on investments to consider.
Planning
Just as starting a business requires a plan, investment should require the same level of strategy. Do your due diligence and ensure these potential investments align with your business goals, debt load and financing ability.
Don’t simply gamble money away, make calculated decisions to avoid losses.
Penny stocks
As a new investor, this is a safe place to start your journey. Penny stocks are companies that trade with a low share price and it is a highly volatile investment. The fact that the low share price allows investors to have multiple shares for a considerably small amount of capital, makes this the ideal starting point.
Diversify
Diversification is central to any successful investment portfolio. This enables you to spread your capital across a range of investments and asset classes, as you look to mitigate risk and minimise your reliance on single and potentially volatile instruments.
Let's say that you invest almost all of your capital in commodities, only to see this market depreciate considerably over a short period of time. Almost instantly, the value of your portfolio will plummet, leaving you with ownership of worthless assets that retain the vast majority of your wealth.
Rather, create a portfolio that includes both volatile and stable assets, while also considering alternative investment vehicles and flexible derivatives.
Seek Out Expert Advice
If you're relatively new to the world of investment, attempting to build a generative and diverse portfolio is far easier said than done.
This is why you should seek out expert advice from financial advisors when starting out, as you leverage the experience of others to inform your decisions. This ensures that you can access tailored and effective services, which ultimately translate into diverse and flexible portfolios.
Stay Updated
There are external factors that are likely to have an impact on your investments. It is important to understand that investments are very vulnerable to geopolitical and macroeconomic trends. Be proactive! Follow the latest news and trends to identify anything that might pose a danger or an opportunity. This enable you make decisions that are beneficial to you and your business.
This advice is a good place to start, but slowly building up your knowledge and adapting according to your needs and possibilities will ultimately lead you towards the best strategy for you.
Subscribe to our newsletter
If you would like to receive our startup themed newsletter, full of the latest startup opportunities, events, news, stories, tips and advice, then sign up here.
Sid Madge, founder of Meee shares his tips on starting as you mean to go on, by getting the very best from your staff in 60 seconds
Bwalya Kasase, Business Process Consultant at Rebel Energy shares insights on how the renewable energy supplier uses digital workers to improve the customer experience
Peppy secures major investment to help scale its existing menopause, fertility, pregnancy and early parenthood support, and support the introduction of a range of new services.
One Year No Beer, the alcohol-free support service fundraises to scale its business following reports indicating huge surge in alcohol-related deaths since Covid.
The lowdown on Junk Kouture, the Irish-based global platform that's on a mission to unleash the creative brilliance of young people
Considering selling your startup's tech innovation to the healthcare industry? These tips from Evelyne Priestman, Health Economist, Health Enterprise East should help...
Wilton London exceeds crowdfunding target to support its aim of becoming the UK’s number one eco household cleaning brand
TestGorilla is a startup that's on a mission to help you identify the best candidates and make your hiring decisions faster, easier, and bias-free
Major investment for her1, the digital health impact company that's dedicated entirely to female wellbeing...
Major boost for the NI economy as nanotechnology consortium, Smart Nano NI awarded £42.4m by the Strength in Places Fund to support development of new technology for medical devices, communication and data storage.
Published on: 2nd November 2020
If you would like to enable commenting via your Startacus account, please enable Disqus functionality in your Account Settings.
- Peppy Raises £6.6M for its digital health platform 27th Jul 2021 Peppy secures major investment to help scale its existing menopause, fertility, pregnancy and early parenthood support, and support the introduction of a range of new services.
- One Year No Beer launches new £500K crowdfunding campaign 26th Jul 2021 One Year No Beer, the alcohol-free support service fundraises to scale its business following reports indicating huge surge in alcohol-related deaths since Covid.
- Smart Nano NI awarded £42.4m funding from UKRI 22nd Jul 2021 Major boost for the NI economy as nanotechnology consortium, Smart Nano NI awarded £42.4m by the Strength in Places Fund to support development of new technology for medical devices, communication and data storage.
- Ntropy Raises $3.2M for its innovative data platform 20th Jul 2021 Ntropy secures major investment to help with expansion of its team, support market growth and future product development.
