Raising capital to start a small business is not always simple. It is therefore important to understand how to invest such capital when it's eventually raised.

Investment Tips
1. A small business owner should invest in a formal disaster recovery plan and business interruption insurance to protect their business in the event of damaging natural disaster.

2. Experts also advise that you diversify your investments away from your business' industry. Avoid the familarity bias and keep your investment diversified, instead of focusing on your field of expertise.

3. As you plan to invest, conduct a thorough due diligence when investing in stocks.

4. Contribute to a retirement plan as a business owner. Experts advise that you should have and be contributing to a retirement plan, especially because you don't have employer to fall back on.

5. Invest in yourselfand improve your skills. It is advisable to invest in yourself and in bettering your skills and abilities.

6. Build an emergency fund. If you have an emergency fund, you will not need to touch your savings or investment account whenever you an urgent need for using.

Culled: From https://punchng.com

Last edited by Natty (29th Aug 2019 05:43 pm)