You can increase your income and wealth by investing or running a business. Investments can also be included as business is a form of business investment.
There are many types of businesses. There are cooking industry, breeding industry, animal husbandry, breeding industry, breeding industry, and franchising industry.
Even if you have investments, you can invest in stocks, bonds or bonds, deposits, gold, mutual funds, cryptocurrencies, forex, peer-to-peer fintech lending. Choose only based on your financial goals and risk profile.
One of the investments that young people are increasingly enjoying is investing in stocks. Both equity investing and entrepreneurship offer significant and sustainable return opportunities.
So, is it better to speculate in stocks or start a business? Here is an excerpt.
Stock Investment and Starting A Business
Investing in stocks and starting a business have their pros and cons. The downside of this business is that you need to prepare a certain amount of capital to create your own products.
The advantage of starting a company is a wider network of people, because not only will you get the profit, but the business profit will be completely owned by you, and you will come into contact with many people, such as suppliers, consumers and other business partners.
Invest dividends and reap capital gains, profits and useful knowledge. Knowledge can be gained by reading books, attending seminars or trainings, discussing with other investors and traders, and experiencing stock trading firsthand.
Before making a decision, you should take the following into consideration:
1. Set goals you want to achieve
The most important thing is to know what you want to achieve. If you are already working and have a stable income, but want to increase your income, you can start a business.
Profits from running a business can be used directly to meet day-to-day needs. Things like opening a basic grocery store, selling clothes online, etc.
However, if your financial goals are related to preparing for retirement, you should opt for stock investing. Investing in stocks for the long term will allow you to maximize your profits to grow your retirement capital.
2. Know the risks
Next, you need to understand the risks of investing in stocks and starting a business. In addition to offering attractive benefits, both require consideration of risks.
The risks of investing in stocks are, first of all, the risk of not making a profit, the risk of losing money because the selling price of the stock is lower than the buying price, and the risk of liquidation or bankruptcy. Risk of company delisting and stock exchange delisting.
Even starting a business involves the risk of intense competition, hard work to grow the business, losses from unsold sales, volatile market conditions and even bankruptcy.
So, which of these two risks are you willing to take? Invest in stocks or start a business. Your options depend on your risk profile.
Investing in stocks is for those who are adventurous or enterprising. When starting a business, they are generally conservative, moderate, and aggressive, and anyone can do it.
3. Take a look at your finances
Finance is inseparable from stock investment and entrepreneurship. Both require funding.
However, you can adjust it according to your financial situation. If you have the right funds, you can start investing in stocks first.
When you’re already profitable and able to amass a substantial amount of money, you can use your venture capital as a diversification stage of investing in stocks.
However, if you are willing to start a business, your idea and business plan are mature, and you have the capital, go for it. You don’t have to wait any longer to make money faster and get richer.
4. Time flexibility
The key to doing either option is making sure you have free time. If you have a day job but want to earn some extra income, investing in stocks is the right choice for you.
This is because you can monitor stock price movements in real time. A stock trading application owned by an online stock company.
You can set buy and sell price limits so you don’t have to monitor your portfolio on a daily basis. The system starts automatically when the stock price meets the limits you set.
When starting a business, go straight to monitoring and evaluation. If it is not comprehensive, there are many cases of bankruptcy or failure.
That said, starting a business always requires extra time to be creative and innovative and come up with the right business strategy to beat the competition.
5. Where does the accumulation of knowledge come from?
If you don’t know the basics of stock investing, it’s better to start late. Start by learning how to invest in stocks, such as understanding stock investment terms, researching companies and industries, monitoring economic and political conditions, reading financial reports, fundamental analysis, and more.
If you invest in stocks you don’t understand, you’re going to spend that money buying stocks you don’t understand. Follow what your friends or current influencers are sharing.
Even start a business. The basics of starting a business are not only confidence, perseverance, honesty, creativity, and innovation, but also conducting business research, cultivating relationships, attending entrepreneurship seminars, how to determine business capital, selling prices, and more.
6. Worst case calculation
The worst-case scenario with investing in stocks and starting a business is that things don’t go your way or you lose money because of something unexpected. This potential loss has not been considered and calculated.
If God forbids you to fail, there must be a way out of it. You should also be prepared for this.
the decision is in your hands
Whether you want to invest in stocks or start a business, the choice is yours. Think about the pros and cons of both. What are your passions, risk profile and financial situation?
This way, you can make the right choice and enjoy it without regretting it.
