There are a number of individuals who have had £1M+ businesses but who now struggle financially. The issue is usually down to what they did with their money after they have made it. This can happen with almost anyone, but you can also find the individuals who sold there business for 10M+ can also go on to make 100s of million through smart investments. In this article I’m going to talk about some smart methods you can take once you’ve sold your business, and what to do with the earnings you have. Don’t just stop, nothing makes money quite like money.
Tip 1.) Never just put it in a bank!
This is probably the worst thing you can do. You might think its an easy 4% a year, you can live off most of that and have a happy life, the problem is, this is not the safest and its not even close at being good with 4%. I recommend aiming for at least 15% per year for the entire amount of money you have to invest.
2.) Invest in the Forex Markets
This is something I’ve personally done a lot. I picked up a forex trading ebook from a beginner friendly forex blog and never looked back. A few words of warning on this method though. The first is there is loads of BS information when it comes to this. Only follow established sources of information and never purchase any get rich quick products! My second piece of advice is to learn everything before getting started. You can start with short term forex trading, but I’d recommend longer term if you are a beginner. Start with a demo account and go from there, create a strategy and never lose patience with yourself.
3.) Invest in the Stock Markets
A more hands off approach to investing than forex, but one that can easily make you 50% a year on your money. And that’s not using risky trades either, this is just following the guide and not looking for the “change in the tide” in a market, follow the money and you will make money. Again I would recommend reading up as much as possible and researching hugely into a specific industry or company. Never make a trade too early.
4.) Become a Venture Capitalist
This is one for the people who want to stay in the business game. Becoming a VC means you can invest in start-ups similar to what you started and you can have a impact on the business. Usually taking a % of eventual profits, VC’s can make a lot of money, Individuals that have thriving businesses usually start this whilst they still have a business, its awesome to see business owners helping start-ups and if you want to earn money and give back to the business community at the same time, then I’d highly recommend becoming a VC.
5.) Become an Angel Investor
Slightly different to a VC, but can be equally profitable. Usually a silent investor on a particular project, Angel investors can either take a percentage of profit for the business or can just take a higher repayment, for example take the repayment plus interest. For individuals that don’t want to give up a percentage of their business, this can be great and hence angel investing can be hugely profitable for both parties.
Thanks for reading, let me know if you enjoyed this style of content.