If you’re an entrepreneur, you approach investments differently from regular savers. That’s why you need a personalized strategy for investing as a creative, innovative business owner. You have to get a little risky – after all, how are you going to fund your ventures? Here we delve a bit into some investment strategies for entrepreneurs. Protect yourself and your business at all costs!
Build a hands-off portfolio: Create a portfolio with the mindset that you won’t ever dip into those stocks, bonds, and mutual funds. This will protect your retirement accounts and your kids’ college funds so you have them intact when you actually need them.
Diversify: It’s natural to want to invest in stocks that are akin to your business interests, but be sure to diversify your portfolio to include industries that are outside of your comfort zone. For example, if your business is connected to public equity markets, you may want to consider counter cyclical assets like commodities, suggests Inc.
Build up cash for future endeavors: At their heart, entrepreneurs love a good deal, the newest opportunity, the next big thing. Sock away some cash from your existing business in the event you’re presented with an opportunity you just can’t refuse.
Take a balanced approach to investing: Protecting your financial assets begins and ends with a balanced method of investing capital. Don’t go too heavy in one direction or another.
Protect yourself: It’s wise to structure your investments in such a way as to keep creditors from grabbing your money if faced with financial tough times. Likewise, you should structure your business correctly, transferring assets to spouses and children or investing in real estate.
Go conservative outside the business: If you are young, go with a heavy equity portfolio; if you are older, a fixed-income portfolio is wise. As an entrepreneur, you’re smart to approach your portfolio – outside of your business – more conservatively.
Create a solid business model: Your business is your best bet when it comes to investing in yourself. You’ll likely rely on this business to provide you and your spouse with stability once you reach retirement. Focus on building your business every single day, and seek out a professional broker or financial planner to guide your investment strategies.
That said, having a securities fraud attorney in your corner is always a wise idea in case you need to recover losses due to bad advice.