The following article was written by contributor Kat Smith.
Investing is popular for many reasons. You can invest for retirement, to make money, or to build capital to start a business or multiple businesses. Today, we look at investments that can help you launch businesses, no matter what sector you want your business in.
Investing in Coin
Coin investing is one of the oldest methods of investing to date. Whether you are starting out with a specific type of half-dollar or you are enticed by the 20 dollar gold coin, it’s a great way to start small and build some capital. Like most investments, there is some risk with coin investing. You really need to find those solid metal coins (such as silver or gold) that have aged very well. Royal Canadian Mint and United States Mint are fantastic choices as they are meant to be collected and are printed in limited numbers. Their value increases over time. Look for old coins and hang on to them with care. Newer coins could eventually gain value but not as much due to their metallic makeup, they are made with less gold or silver these days. Coin investing is a slow process and one you need to prepare to be involved with for a long time. It’s great at the end of the day because you could gain thousands and thousands of dollars later to sell and finance your business.
Hit the Stock Market
The number one method of investing has been the stock market. We use this type of investing for everything we could possibly desire or dream of. Business owners are not the exception. This is a great way to raise capital for an expansion or to keep the cash flow going through the offseason. While this method is often a lot faster than coin investing, it also comes with risk. This risk is often felt sooner and with greater effect. Mistakes will be made, you will lose money at some point, and it is all okay. The important thing is to invest smartly. Don’t put your eggs all in one basket, diversifying your portfolio can help you hang on to a couple of high-risk stocks and some mid-risk stocks so that you won’t lose everything. You should continually grow with relatively small dips and rises. At the same time, know exactly what you are investing in! Make sure that the company you are investing in is one that you use often, shows a trend for growth, shows the ability to flow with worldly changes, and has a mission that you can support.
Invest in Other Businesses
It may sound like a bad idea, but investing in other businesses can really help you grow your own business or even launch a new one. You could invest in a competitor but what we are truly suggesting is investing in a business in another sector that could benefit your business. For instance, if you have a submarine sandwich shop that uses locally made bread, investing in a bakery is a great way to join forces and support that business so that you have a source of supplies. Not only can you make great money from “partnering” with another business, you can network and great build relationships with other entrepreneurs. Investing in another business is much like stock; know something about the business, it’s potential for growth, and that you want to support this business.
Investing your time and money to your business is what will make it a success. Investing extra money can help you launch a business, expand an old one, or launch an entirely new one. Investing is your best friend as a business owner and one you should not overlook.