Over 30.7 million small businesses were registered in the country as of 2019, accounting for 99.9 percent of the businesses contributing to the national economy. Though coming from various sectors, each of these businesses has one objective — to be successful.
With the outbreak of the COVID-19 pandemic, countless small businesses were drastically affected. While some managed to keep afloat, getting creative about surviving the economic turmoil, many had to shut down their doors forever. Indeed, many are struggling since capital was scarce and revenue was at its lowest.
But things are looking up again for small businesses this year. The promising results of the vaccination rollouts mean business will be rolling back any time soon. Given this, perhaps it is high time for your small business to consider some investment opportunities that will help it expand and prosper.
1. Grow Your Business
Investments do not necessarily have to mean “investing outside of your business.” In fact, investing in your own brand is an excellent way to increase your bottom line.
However, keep in mind that whatever amount you use, it should not be taken out directly from your business funds. Rather, it should be from the surplus profits. Nonetheless, if you want to fast-track your business growth, you can always resort to SBA funding loans to finance your plans.
These are some of the best ways how you can invest in your business:
There is no such thing as too much when it comes to training and continuing education. However, it is a common mistake among small business owners to undermine the value of expanding the knowledge and skills of their staff.
Industries are ever-evolving, and it is crucial to stay relevant and competitive if you do not want to be left behind. So, invest in training seminars and conferences for your employees.
The reality is, it is difficult for a business to effectively operate if no one knows about them. What you can do, though, is increase your brand’s exposure through networking events, marketing campaigns, interviews, and the likes.
Attend trade shows, conferences, and other relevant events. Though it is not the first thing that comes to your mind if you want your business to grow, this step is crucial.
As your business grows, so too are the tasks that you need to handle. Rather than take on all the responsibilities yourself, perhaps it is high time you farm out responsibilities.
There is a multitude of advantages of hiring outsourcing firms instead of hiring in-house staff. Apart from saving on overhead costs, outsourcing companies are field experts. You will be ensured that whatever work is delegated is done properly.
2. Consider Real Estate Investment
Now, for investments outside of your business, you might want to consider getting into the real estate industry. If your company has some property lying idly for some time, why not put in some money and work to turn it into a rental space?
Whether it is an apartment or a commercial space, it will give an additional income stream to your business. Considering that mortgage rates are at an all-time low since the 1970s, now is the opportune time to buy real estate property.
3. Buy Low-cost Stocks
Stocks have and always been the best bet when it comes to investment. It does not mean, though, you have to dip into your 402k or emergency savings so that you can buy high-cost stocks.
There are plenty of potentially promising stocks in the market that you can purchase for a few dollars. Called “penny stocks,” these common stocks are worth the risk for a newbie investor.
These highly volatile stocks can teach you valuable skills in investment. Moreover, since it only calls for a small amount of money to get started, any loss would not be as heavy as when you invest in high-priced stocks.
Keep in mind, though, to diversify your portfolio in stock investment. Doing so also buttresses any loss if one stock devalues.
4. Mutual Fund
If you think you do not have enough time to monitor and manage stocks by yourself, you can also opt for mutual funds. This investment opportunity allows you to sit back and let things run their course. In mutual fund investment, you, along with other investors, pool your money to invest in securities such as money market instruments, stocks, bonds, and other assets.
As compared with stocks, mutual funds have a lower risk. You can be assured that whatever amount you put into it, you will receive some profit.
Though each business has a different structure and end goal, these investment tips will hopefully shed some light to help you expand and improve your small business.