This year is a great time to grow your business, not just because of the increasing customer demand across multiple industries but because women-owned ventures have the potential to generate more income. Indeed, a report from the Census Bureau found that women-owned businesses are growing twice as fast as other businesses in the country.
With all the additional profits potentially coming in, now is the time to think about where to use them. One thing you should definitely be doing is investing in them, and below are some of the reasons why.
Prepares you to scale your business
The first and most obvious reason why you should be investing is so that you can generate more money to grow your business. After all, scaling up is going to need a lot of resources, which investment earnings can help you with. This is certainly better than taking out a loan, which will only burden you with additional interests.
Investing even encourages you to plan for the long-term, and clear goals will only help your business prosper.
Allows you to support other women-owned businesses
Investing doesn’t have to be limited to Fortune 500 stocks, real estate, and other commonly traded assets — you can also choose to invest in businesses. And since women-owned businesses are doing very well today, you can invest your money in those, as long as they allow you to purchase company shares. You can opt to invest in bigger, more established companies like Eventbrite (EB) or startups like Ayala Pharmaceuticals (AYLA).
Ensures long-term financial stability
When you reach that point where you no longer want to work, your investments will ensure that you’ll have more than enough money to sustain yourself in the future.
This tip ties in with a huge issue in retirement today, where a study from the Bank of America informs us that women retire with less money than men. This is due to many reasons, such as women having the tendency to put their priorities last. Investing your extra profits will guarantee that you will always have money for yourself no matter what bumps come your way.
How to start investing
Now that you know why you should invest, it’s time to get started. The first thing you have to do is determine and research the kind of investments you want to look into. Your options will depend on the type of risks that you’re willing to take and how fast you want the money to grow.
For example, government bonds like SPDR and PIMCO are a safe option, though your money will grow slowly. Meanwhile, since the price of gold is rising, gold investments have the potential to earn you big returns. And rather than invest in physical gold, which is expensive, look into top gold ETFs like GDX and GDXJ instead. Since they’re traded like shares, you can even invest a small amount — all without having to worry about the cost of authenticating and storing real gold.
The next step is to open an online brokerage account. Choose a platform that has low fees and an interface you’re comfortable working on. Finally, make your deposit and invest in the assets or funds you’ve chosen.