Often, when entrepreneurs and small business owners create a successful company, they are consumed by the company’s day-to-day operations and lose sight of all the investments they should make. The company you create or manage today is not late. It’s a way to achieve your goals based on what you want in your life. What do you want To raise a family, travel the world and make a difference in the lives of others? Now, when you think about your company, take a step back and think about your goals and consider the following as important investments you need to make in both you and your company.
Your business. Sometimes, when you start a company, you may be consumed by every operation of your business and lose sight of the most important investment you can make … to yourself. This can be as easy as exercising every year, taking courses at a local university, traveling and relaxing over time. Another way to consider yourself an investment is to find a way to give yourself more time. It’s time to relax, get a massage, go for a run, and meet friends. See what you can “outsource” and create your slightly balanced version of healthy and happy.
Your business needs an investment.. Small business owners and entrepreneurs often run their businesses with a little waste in order to generate and maximize profits. Sometimes it’s not about income or profit, but about the costs you need to see. Alternatively, investing in new software can result in more transactions and reduce employee time to perform certain tasks. If your company isn’t able to generate the highest return on investment, you need to take a step back and analyze how to run your company better.
Tax accountant is your friend.. If you are a successful entrepreneur or small business owner, you may not realize that your only biggest personal expense is your income tax. Entrepreneurs can increase their net income from 10% to 50% by assessing tax-lowering options with only minor changes in the way they manage their business and personal lives. This increased cash flow can have a dramatic impact on your future if reinvested wisely. You can find out where your business is embedded and check the legal ownership of your company. You can also see if you have configured your company to be owned by a Roth 401k, whether it will result in tax-exempt dividends, or if you can invest your profits tax-free for the rest of your life.
Real estate diversification.. Well, your company is successful and offers strong cash flow where you can pay more yourself and buy that Tesla. Alternatively, diversify your financial “platform” and invest in commercial real estate that offers additional cash flow and tax benefits. I know some entrepreneurs who have built a commercial real estate portfolio that generates over $ 250,000 in net cash flow annually while the value of their real estate continues to rise. Small office complexes, apartments and warehouses can all offer a diverse portfolio of real estate that can generate lifetime income on demand.
Invest extensively in the stock market. New investment platforms like meme stocks and Robin Hood aren’t really investing and are gambling. You shouldn’t endanger your hard-earned income unless you’re going to spend a couple of hours each day doing research and researching markets, trends, and businesses. You can get better service by investing evenly in a wide range of 3-4 market index ETFs like the Dow, S & P 500, NASDAQ, and perhaps Russell 2000, and leaving the rest to time and history. According to Motley Fool.com, the stock market has risen for years rather than fallen. The S & P 500 has gained value in 40 of the last 50 years, generating an average annual return of 10.9%. With that average rate of return alone, your investment doubles every seven years. All without stress, headaches, personal investment or perhaps the risk of betting.