If you’ve come into a significant sum of money in recent times, through a settlement or perhaps through inheritance; you’re going to want to nurture and protect your new found nest egg. If you have the entrepreneurial spirit; the world is your oyster, as there are a variety of opportunities to invest and grow your cash. Making wise financial decisions, coupled with a business savvy brain, can lead to huge rewards later down the line. The following are some ideas and areas to consider if you want to put your money somewhere interesting and not just leave it sitting in the bank.
When done right; the hospitality industry can lead to an empire. Investing your money in a restaurant or hotel that succeeds can lead to a chain in the future and a major return on what you put in. The industry will also keep you busy, on your toes, and is not for the faint of heart.
Hotels produce constant and reliable returns; this can contrast to restaurants, as food trends change and there is more fresh competition opening up on every street corner. If you invest in a hotel in a busy area; you’ll have the opportunity for a steady and consistent flow of cash in return. Think about your target market and cater the hotel space for them; business people often want facilities like wifi, and for long stays, a gym and restaurant area. However, if you want to attract the holidaymaker market, you’ll need to invest more in the room decor, amenities, and a decent breakfast chef.
If you choose a restauranteurs life; the returns can be great; however there’s also a risk of failing in your first year and losing you money. Remember though; if you have a great location and your food and service are excellent, people will always find an occasion to go out and pay for food, so you could be onto a winner. Take a look at 50 Restaurant Industry Statistics for Restaurant Owners for an insight into your potential investment. Don’t throw your money away because you want a “fun project” (you’re on the wrong website fr that); make informed and detailed decisions and seek the right legal help before you invest.
It’s no secret that as a landlord; you’ll be able to gain a substantial return on your investment in real estate. Research into the market you want to target and ensure the location and the state of your property choice won’t put off any potential renters. A student property investment is a great idea for those who want a consistent flow of renters; student accommodation is always in demand around college and university areas, so it might be well worth considering. Ensure that you buy through a reputable company and you could receive a reliable and secure return on your asset.
You might have the rare chance to invest in a commercial property; in which case you should grab the opportunity as quickly as you can. Commercial properties, filled with businesses in office and store form, can be an excellent source of income, and the return on your original investment will be great. Similarly; you could consider a holiday-let property; choose the real estate in an area with a steady season of travelers and tourists, so that you can ensure you’ll have rent in the bank all year round. You can charge a much higher rate of rent for vacation properties, which will be able to cover your costs during low season.
If you'd prefer to simply dip your toes in the water, to begin with; you could invest in a smaller property with rental potential. The speed it takes to successfully flip a house will determine how much you get back after purchase. You could renovate real estate to rent out; however, you could also begin the process of buying and flipping houses for a living. You’ll need our cash sum at the beginning of the process; then you can continue to grow your portfolio in the real estate market and make an increase on your return with each home.
A cash lump sum is a perfect opportunity to get out of your 9-5 and start your own company; rather than enhancing your current income, you could start dictating what you earn. Make sure you begin with a gap in the market (which is becoming more and more difficult) or ensure that you’ll be able to offer more to potential clients and consumers than your competitors. You’ll need money for your website, marketing, and any products you wish to create or sell. Online retail is always going to cost you less in overheads than a physical store would, making it a great place to start. You can check out various affordable and free ways to set up a small business, and techniques to market your brand and get the word out that you’ve arrived on the scene.
Stick to what you know in business; don’t choose to sell or distribute something on a whim because you think it will do well. Today’s shoppers are savvy about what companies they choose to invest in; therefore, it’s important that your identity is strong and you promote you ethics at every opportunity. Don’t expect to reap the rewards straight away; very few new businesses are able to turn a profit in their 2nd or 3rd year, let alone their 1st, so don’t be disheartened as your money could still pay off.
However, you choose to invest your cash; take the time to understand what you should do and utilize your current skills and expertise. It may be that you’ll need to spend a little to gain a qualification and learn the ropes before you make any significant purchase. Spend money on reputable legal help and seek expert advice in your chosen area of the market. Wise choices should be how you mean to go on, and there should be no reason that you won’t become a success and get a lucrative return on your investment.