By Ankur Shah. Originally published at ValueWalk.
Are you in search of a business investment idea that has the potential to deliver solid returns over several decades? If so, it’s essential to review the leading candidates that typically attract the attention of savvy entrepreneurs and serious investors. Keep in mind that not all opportunities come with the same risk profile or probability of success. However, there’s truly something for everyone in today’s mixed economy, regardless of temporary ups and downs, unpredictable inflationary pressures, and seesaw political climates. For more conservative adults, blue chip securities have long been a go-to resource for creating a stable financial portfolio.
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It’s essential to keep an open mind about the definition of the word investment because there are dozens of ways to approach the wealth puzzle. A number of business minded people prefer to invest in themselves by way of graduate degrees, real estate license training, and other such coursework. Master’s diplomas open up lots of doors to unique opportunities for employment, partnership, and small-business ownership.
Likewise, real estate agents have access to profitable deals that ordinary people can’t take advantage of in most cases. Some working adults prefer to start their own service oriented or merchandise companies, become silent partners to hands on owners, create cryptocurrency portfolios, or buy and operate franchises. There are numerous ways to create wealth via business investment, and the prospects are much better for those who are patient and set their sights on long-term instead of overnight success. Here are details about some of the most popular ideas in the 2020s.
Blue Chip Stock and Cryptocurrency Portfolios
Depending on your level of risk tolerance, building a stand-alone portfolio of either blue chip stocks or cryptocurrency can be a simple way of starting a business enterprise that aims for long-term profitability. Some prefer to mix these two assets for the purpose of diversification. However, others opt for one or the other based on personal preference, available capital, and their knowledge of the relevant markets.
Graduate/Master’s Degrees
One of the most profitable, sensible ways to invest in yourself is to earn a master’s degree in a field relevant to your current career. Taking out graduate loans makes sense for the vast majority of working adults who simply don’t have the savings to cover education-related expenses like tuition, activity fees, textbooks, and more. Working with a private lender is typically the preferred approach because these professionals have the power to offer tailored financial arrangements that include competitive interest rates, lenient terms, and realistic repayment periods. There’s also the issue of higher borrowing limits that are part of a private lender’s long list of advantages.
Real Estate Training
Earning a real estate license is a smart piece of a successful real estate business plan and it can super-charge your investing career if you work alone. Many adults who are interested in purchasing residential or small commercial properties, fixing them up, and then reselling them do so as licensed agents working for their own accounts. These flippers are among the most successful independent entrepreneurs of the 2020s.
However, it’s essential for anyone considering investing in a RE license to study the local conditions before deciding to flip properties. Some areas are more conducive to the practice, primarily those in which you can obtain easy financing for “fixer-upper” properties and regions in which there are enough houses and small offices on the market. Holding a license does offer you the unique advantage of knowing how to objectively evaluate the potential worth of a property and understanding how to spot good potential deals when they become available.
Silent Partnerships
Some investors prefer the passive approach, which often includes becoming a silent backer of an ongoing business. To make this technique work, it’s wise to connect with a business broker who works with dozens of local entrepreneurs, some of whom are on the lookout for financial backers who want a share of the profits but do not wish to become involved in the day-to-day operations of the organization. Spend time evaluating these types of opportunities, and consider spreading your capital around into two or more such arrangements. That way, you’ll still have the luxury of staying outside the operational realm but will gain the benefit of diversifying your total financial outlay.
Service-Based Companies
Perhaps the most common way individuals invest in businesses is to start their own service-based organizations. Millions of accountants, engineers, nurses, lawyers, consultants, tutors, website designers, and professional writers opt for this structure. It’s a reliable way to put your skills and available capital to work but does come with risks.
No new business is guaranteed success, no matter how hard the owner works or how well the overall economy is currently performing. In fact, going into business for yourself should begin as a sideline rather than an all-or-nothing proposition. Those who make a successful go of it tend to start slowly, devoting just a few hours per week to their new entity. Plus, it’s imperative to study the market and know what kind of competition you face from local, online, and national companies that offer similar services.
Franchises
Historically, buying a franchise and working it full-time as a manager or remote owner is one of the most common ways people seek to earn a profit from their own business venture. The model has been around for more than a century, but it’s not for everyone. Startup expenses can be quite high and usually require getting a loan to acquire majority or total ownership of the franchise. Likewise, ongoing costs can be a challenge, particularly during the first few months of operations when you’re still building up a loyal customer base.
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