When the financial markets get rocky, investors scramble to find a “safe” place for their money. But here’s the truth: the best investment you can make isn’t in the stock market — it’s in yourself and your business.
Why This Investment Stands Out
Unlike outside investments, when you invest in your own business, you’re in control. You can monitor your progress daily, make adjustments in real time, and directly influence the return on your investment. Whether it’s upgrading technology, improving systems, or training your team, the payoff can be substantial in productivity and profitability.
Real Examples of High-Return Investments
- Retailers who boost inventory wisely can see dramatic gains. For instance, if your inventory turns over four times per year and you average 25% gross profit, an additional $1,000 invested could return as much as 133%.
- Service businesses that upgrade websites, adopt new tools, or invest in skill-building often enjoy long-term rewards; not just financially, but in better efficiency and happier teams.
- Construction firms that invest in safety training, certifications, or innovative equipment not only improve efficiency but also stand out from competitors.
Consider Real Estate Ownership
If you lease your business space, explore the benefits of owning commercial property. Becoming both your landlord and tenant means every mortgage payment builds your equity. Many business owners who made this move years ago find that, upon retirement, their property is worth more than their business itself.
Don’t Forget Personal Diversification
While investing in your business is powerful, diversification is still key. The Business Therapist® encourages setting aside part of your profits each year for safe, conservative investments outside the business.
Your business is your biggest and riskiest asset. To balance that, keep your “nest egg” investments low-risk and stable. The events of recent years are a reminder of what can happen when we rely too heavily on markets beyond our control.
If you don’t know where to begin, reach out: paul@thebusinesstherapist.com
