As an entrepreneur, the importance of having a strong investment strategy is surely not lost on you. After all, investing soundly means you are doing everything you can to grow your business and operate from a position of strength, and ensure that you’re investing to serve your business’ goals. But, given the myriad responsibilities you shoulder and fires you’re required to put out on a daily basis, it is possible that this doesn’t leave you with enough time to work on a strategy from scratch. Here are 3 tips that will help you formulate a plan of action that serves your business’ unique interests.
Take Measured, Calculated Risks
Your strategy should neither be too conservative, nor should it be reckless where you’re spending every dime on the first enticing opportunity that you find. Instead, it’s best to walk the middle path and take calculated risks as and when the situation presents itself.
If you’re unsure of your instinct when it comes to making the final decision, consider hiring the services of an expert, such as a wealth strategist. He/she will be able to identify all the options available to you and give you the go-ahead on which risk carries the possibility of an equally high pay-off.
Don’t Put All Your Eggs In One Basket
Even if you have perused all the information available to you before you commit to an investment, it is possible that it sours all of a sudden. So, it’s best to diversify and invest in a mix of securities and instruments. This way if one investment performs poorly, gains from others balance out the loss. In this regard, it may also be a good idea to consider investing in industries that are recession-proof.
Focus On Consistency
Another important aspect to investing as an entrepreneur is ensuring that your efforts aren’t a one-off exercise that you carry out once a quarter or year. It’s important to invest consistently, on a monthly basis, so that you’re putting the funds available to you to good use and are able to capitalise on opportunities that are available to you. By limiting your window to the end of the quarter, for instance, you may find that the opportunities that you can make use of are far and few.
Once you’re able to divert a fixed portion of your income towards investments, shift your sights to staying invested for the long haul. This doesn’t mean that you shouldn’t opt out of investments that don’t serve you. However, it’s imperative that you’re patient and don’t take decisions on the spur of the moment. Thinking things through and looking at your investment in all possible manners will help you take decisions that are driven by logic and not emotion.
Keeping these pointers in mind, start investing if you haven’t already! Saving regularly and building a reserve you can fall back on is important, but in the larger scheme of things, having a robust investment strategy will bolster business growth, expansion and the well-being of your employees.
The writer is CEO, BankBazaar.
BankBazaar.com is a leading online marketplace in India that helps consumers compare and apply for credit card, personal loan, home loan, car loan, and insurance.