Your business is likely your biggest asset, but diversification is also important. These smart business owner investment tips will help you get started.
Investing is an effective way to grow your business and bring in some additional profit through entrepreneurial methods. But it can also be a difficult and risky terrain, especially if you’re unaccustomed to trading and selling.
In fact, an estimated nine in ten traders lose money. But you can reduce your risk of loss with these five great business owner investment tips and strategies.
1. Sleep On It
When you’re first presented with a great investment opportunity, you may find yourself tempted to jump on the deal and invest immediately. Though that type of impulsive behavior is great in certain settings and may even lead to innovation, it isn’t advised when presented with investment suggestions.
Instead, give yourself at least 24 hours to mull over the details of your potential investment. By giving yourself a day to think it over, you’ll save yourself and your company a whole lot of debt and heartache.
2. Be Wary Of Cryptocurrency
Whether it’s Dogecoin, Ethereum, Bitcoin, or any of the other dozens of cryptocurrencies out there, you’ve probably heard that these new digital currencies are all the rage.
What you may not know, however, is how risky investing in them can be. Bitcoin alone — known as one of the world’s leading cryptocurrencies — is known for its volatility.
One moment you’ll gain a few hundred dollars, then five minutes later you could lose that money and more.
If you’re dead set on investing in a form of cryptocurrency, be smart about it. Do your research and use a crypto trading bot to assist with your investments.
3. Start Small
Admittedly, penny stocks aren’t the most exciting things to trade, but they provide a great entry point for someone new to the market.
Feel free to experiment with a few penny stocks to get a good sense for how the market works. Penny stock investment tips are easy to find, so do a bit of research and let yourself have some fun.
4. Set Aside Money For Taxes And Fees
While investing is a great way to make money for your company, it isn’t without its drawbacks. Chief among them are the fees and taxes associated with trading and selling.
Expect to pay around $9 for a non-broker assisted transaction or $30 for the help of a professional broker.
Aside from fees per transaction, you may also rack up some serious tax fees. Should you sell within the first year, expect to pay up to 35%.
5. Consider How An Investment Could Affect Your Company
Last but not least, always consider how your investment could affect your company. We’re not intending to sound dour or cynical, but recall that a lot of traders lose money on their investments.
If you don’t have a lot of extra money to throw around, even a small loss could send your finances spiraling.
Diversify Your Portfolio And Grow Your Company With These Business Owner Investment Tips
Whether you’re investing in products or other companies, investing can be a wonderful way to make some extra money for your business. But as you begin to experiment with the market, be sure to keep these business owner investment tips in mind.
For more great advice on how you can help your business succeed, be sure to read our guide to five ways you can help your small business prosper.