“The biggest mistake that a small business can make is to think like a small business.”
You will need to overcome formidable obstacles and climb many mountains if you ever hope to realise your dream of owning a lucrative enterprise. Even though you might already possess the willpower and a great product, it is an undeniable fact that your efforts will fall upon deaf ears if you are unable to generate the required capital.
What are some innovative approaches to create additional revenue that can be placed directly back into your business? You may be surprised at some of the answers found below.
You may have already heard of the benefits associated with currency trading. This may be a particularly relevant idea if you are looking for a short-term means to generate income. Many SME owners take advantage of the relative liquidity found within this sector and as opposed to long-term holdings such as blue-chip stocks, positions can be closed and opened within minutes or even less.
When we consider that the volume of the 2017 Forex markets is four times the value of the global GDP, it becomes clear why currency trades are attractive.
We will take a hiatus from the world of investing for a moment in order to mention a new trend which has caught on with the younger generation. Kickstarter campaigns can be extremely effective methods to generate revenue from like-minded individuals and in some cases, from the help of complete strangers.
If you are still doubting this approach, we should mention that over $3.2 billion dollars have already been utilised to fund no fewer than 130,000 projects from around the world. This is also the reason why many venture capitalists are beginning to take this online service seriously.
Financial spread betting is another interesting method to leverage if you have been hoping to gain a fiscal edge. Many start-up business owners choose this option, as they can profit even if the value of a certain asset or index falls. The main point is to correctly predict the movement.
There are also times when you are able to employ a margin when spread betting. While this can dramatically increase your earnings, it may also be risky if you are incorrect with your predictions. It is best to approach any margin trade carefully in order to avoid such a scenario.
You might instead seek to embrace a more traditional approach by investing in stocks and shares. Not only may profits be just around the corner, but larger corporations such as Microsoft and Facebook will offer dividends. These are predictable sources of income which are distributed on a regular basis, so they can be funnelled directly back into your business. If you have followed the markets in the past, this could be an excellent choice.
One of the hurdles facing modern business owners is that generating additional revenue will often involve time constraints. To put this another way, the majority of SME managers are focused upon day-to-day activities such as sales, product development and customer service. One way to deal with this situation while still enjoying a successful side hustle is to develop what can be called a self-sustaining portfolio. A self-sustaining portfolio is one which will continue to compound revenue even when investor oversight is limited. The main question is which assets should be included to capitalise upon this beneficial situation.
Many traders prefer blue-chip stocks due to their relative stability in comparison to liquid investments such as currency positions. However, another undeniable fact is that blue-chip holdings are often associated with predictable dividends on a quarterly basis. This is important, for they can be used as a means of generating additional funds without increasing the levels of risk.
Of course, the intention of any investment is to limit risk and to maximise reward. This can often be achieved through strategic holdings within the commodities sector. When approached from a long-term perspective, such assets can frequently provide steady returns while experiencing relatively less open-market volatility. It is also worth mentioning that modern trading platforms will supply the user with instant access to his or her holdings, so keeping abreast of the latest movements is always a possibility.
There is simply no reason that your small business has to remain small. All of these methods can represent excellent opportunities if they are implemented in the correct fashion.