As an entrepreneur, your “job” is to turn ideas into businesses and to turn businesses into profit-making machines. As such, being able to make money through running a business is undoubtedly part of the plan. But perhaps it should not be the whole plan. Here, we’re looking at steps you can take to diversify your income.
Early days of getting MIKOL off its feet.
Invest in businesses
If you get a successful business up and running, then you will have developed insight and hands-on experience that other business owners, especially fledgling ones, would find valuable. Warren Buffet made a lot of his money by investing in businesses, helping them find the track to growth, and then selling his part in them when they became a lot more profitable. By building your own expertise, you can make your money in the same way, becoming an angel investor and using your knowledge to help growing businesses while also improving your financial future.
Build a diverse portfolio
Investing in businesses that you then go on to help is one way to use your money. However, you don’t always have to be such an active participant in increasing the market value of your investments. You can’t quite “set and forget” your investment portfolio, but you don’t have to give it quite as much attention. Diversifying your portfolio with stocks, bonds, Forex, and the like can help you find the degree of safety vs. return on investment that you’re comfortable with. The sooner you start investing even a little money, the more likely you are to start seeing significant returns sooner, too.
Consider real estate
Another type of investment that is a little more hands-on, unless you get some help, is that of real estate. You can buy and flip homes for a profit if you’re able to identify areas where the market value is about to increase or have an eye for property development. However, most people who invest in real estate make their money through rentals, instead. With multiple properties, your rental yields can turn into a sizable portion of income. If you’re willing to share those yields, you can work with a property management company that will take care of the day to day of running them for you, too.
As you gain expertise and insight that other business owners might find valuable, then you may be able to start making a living by selling that expertise. Investing in businesses to help them grow is one way. However, successful entrepreneurs can also become keynote speakers, sell eBooks and webinars, and generally offer their expertise and sell their personal brand much more broadly through the internet. It’s a crowded market, so you need to be able to find a niche that helps you stand out from the others.
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It’s worth diversifying your income so that you can be in a better position to take risks. Losing money in your business isn’t likely to affect you as hard if you also have a diversified investment portfolio paying off dividends and a personal brand that keeps paying off, too.