8 Small Business investing options


What is one investment option that a small business should consider? Why?

To help your small business take on different investment options, we asked financial experts and small business leaders this question for their best investment ideas. From consulting a tax expert to getting into stocks and shares, there are several smart investment tips that may help your small business.

Here are eight investment options that small businesses should consider:

  • Learn About Objectives & Preferences
  • Consult an International Tax Expert
  • Invest in Your People
  • Help Fund Your Home Base
  • Find Companies That Improve Lives
  • Build Wealth with Index Funds
  • Think About Retirement Early
  • Get into Stocks and Shares

Learn About Objectives & Preferences

As any sound advisor will say, the best investment options for a small business truly are based on a personal situation. Some small businesses want more flexibility and control with their savings. Others are looking for less risk and fees. Before looking at investment options, small business owners should learn about their objectives and preferences. Then, they can see how investment options like life insurance or annuities can improve their financial position by safely growing their money while protecting it from tax and market risks. —Chris Abrams, Marcan Insurance

Consult an International Tax Expert

Investment options depend on a small business owner’s situation. Small business owners located overseas must understand that tax laws can differ considerably from country to country and impact their assets, financial accounts, and investments. That’s why consulting with an international tax attorney on issues like cross-border tax structuring, and compliance needs to be a part of the process. Investments aren’t just about the return; they’re also about the tax ramifications and savings by making the right choices. — Jason Kovan, International Tax Attorney

Invest in your People

Some of the most successful businesses tend to have a people-first mentality. An investment in people, whether that is putting in the time to make your customers happy or providing the resources necessary for happier employees, is an investment in your business’ success. If your customers are happy, they will recommend your business to their family and friends. If your employees are happy, they will be more willing to invest their time and efforts into the company’s goals and vision for the long term. — Brianna Vaughan, LendThrive

Help fund your Home Base

Invest in municipal bonds to help fund and develop your home base where most of your customers are located. These types of bonds offer a way to build interest while preserving your capital. They also have some tax benefits. Many municipal bonds are exempt from federal income tax as well as state and local taxes. — Rronniba Pemberton, Markitors

Find companies that Improve Lives

Investing in tech companies and products like ours helps to advance the industry and improve our daily lives. Predictive text and real-time spelling correction capabilities help to open doors for more opportunities not only for your business, but also your customers and employees who struggle with text. It also helps to improve overall productivity to maximize daily efforts.

As we know, professional communication is a vital part of business. Whether you are writing internal or external communications, it takes time to prepare. Lightkey is a text prediction and grammar correcting software that supports over 60 professional content domains, so you can get text predictions for categories such as business, law and academia. No matter your industry, you’ll be able to write confidently and save time on spell checking and punctuation. — Guy Katabi, Lightkey

Build Wealth with Index Funds

Low-cost index funds are the most common-sense investment for the majority of investors, including small businesses, and especially for people with limited investing knowledge. If you periodically invest in index funds and reinvest any capital gains and dividend payments, you stand a good chance of beating professional investors over the long term. Index funds provide broad, diversified market exposure and are one of the safest equity investments a small business can make. Index funds are Warren Buffet’s favorite investment and have performed the best for him over his investing career. — Bryce Welker, CPA Exam Guy

Think about Retirement Early

You will eventually want to retire once you have stopped running your business, and both need the same quality of attention in order to feel financially secure. The best way to do this is to start a retirement account where you can put a set monthly amount. Working on your retirement account years in advance can prepare you for the future without needing to be stressed about it. By increasing the amount you’re putting in, the interest will build over time, and you’ll feel much safer in the years to come. –– Jacob Dayan, Community Tax

Get into Stocks and Shares

Stocks and shares show strong returns in a time with almost no interest on deposits. Stock is equity that signifies the ownership of a fraction of the underlying business and it grows with the company. Besides this, regular dividends and other distributions help to strengthen your capital base. An investment in stocks is also extremely flexible as it can be sold within minutes. — Adam Garcia, The Stock Dork

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