OK, so your business is finally in profit after years of struggling. Congratulations! But now you have some thinking to do. Because there’s no point in just leaving that money sitting in your business account doing nothing is there? Well, not unless you don’t want to make any money on it. Let’s look at some interesting and intelligent ways of investing your business profits.
Move Your Money
If you have built up healthy profits, the first thing to do is move your money around. Use different banks to make sure your deposit are still protected by their insurance. Even a standard business savings account can give you a healthy boost in interest – just by leaving your money in there. Fixed deposit schemes tend to offer the best interest, so try and find a selection of the best ones and spread your money around.
Everybody needs somewhere to live, and every business needs somewhere to call home. Those are the simple reasons why real estate is such a worthwhile investment to make with your business profits. However, you do have to think carefully about the area you intend to locate in. It’s no use buying a property that’s going to sit empty for extended periods of time because that’s just going to cost you your profits. Check out your local markets for attractive business or residential areas, and don’t be afraid to look further afield. Even casting your eye over the property in foreign countries can be a wise move. Just do your research first!
Gold: It’s been popular for thousands of years, and will remain so. That’s why many people see it as a safe bet. You can invest your business profits in gold quickly, either through a broker or trader or even by yourself. Software programs like those offered by ACM Gold will let you manage your levels, and buy and sell to your heart’s content. And all from the comfort of your office desk! However, it’s probably wise not to invest all your profits into one commodity. Make sure you are spreading your risk around other areas, too.
You can also buy shares in other companies, and although it’s a little too risky for some, there are strategies you can employ to reduce your risk. Make sure you are playing the long game, for a start. You need to have a plan invest for at least five years to reduce your risk and get the safest returns. Sure, some people get lucky with a one-off gamble, but those wins are rare, and shouldn’t be counted on.
Enter A New Market
Another way of investing your business profits is to look into new markets. Perhaps there is a local business in your area that compliments yours? If you were to buy it or form a partnership, you will strengthen your brand and open up a whole new world. Or even a new product! You will also get a new batch of staff with different ideas and talents. It’s a great way of diversifying your business and should not be ignored.
We hope these ideas have given you some inspiration to get your profits out of your standard account and to work better for your business. With any luck, it won’t be long before you start reaping the rewards!
Latest posts by Jess (see all)
- The Role of Conveyor Systems in a Small Manufacturing Business - January 10, 2018
- A Girl’s Guide to Preparing for the CPA Exam - January 4, 2018
- Tips on How to Avoid Situations That Could Lead to Sexual Harassment - December 29, 2017