7 Reasons To Invest In Your Business

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In order to build your business, you might want to invest your money. Investing in your business is believing in yourself and your potential to grow your idea into a lucrative reality. If you don’t invest, you are missing out on an opportunity to become self-employed as well as increase your financial worth.

Of course, there is a possibility you might lose your money but if you invest wisely, the potential of amassing more wealth is higher than if you never invest. Most people with good business ideas like to play it safe; they tend to be skeptical about investing in themselves. Similarly, a good number of small businesses fail because entrepreneurs are not keen on self-investment.

If you are in a higher income occupation, chances are you are making good money working at your traditional job. However, when it boils down to making money for investment purposes, it is quite difficult to compete with the benefits that come with having your own business. Here are some of the reasons why you should invest in your business.

Total ownership and full control

Funding or investing in your business means you get to retain complete ownership of the business, thus receiving 100% of profits in the future. Since you are the one putting in all the work, you should be the one getting the rewards.

Accepting help from a third party, whether monetary or otherwise, does not come for free as there are always strings attached. Private equity funds or venture capitalists will often demand a say in how you run the business. This can take your business in a direction you are not happy with.

If you rely on your own funding, you won’t have to answer to anyone but yourself. This means you can take your business or company in any direction you see fit. It also means you can change course any time you feel necessary.

Better career security

The career and job security most employees once relied upon are slowly disappearing. This is because of two major reasons: the new common view of employees as commodities, and the demise of labor unions. Most people hold several jobs throughout their careers, and that may be interrupted by unknown lengths of periods of unemployment.

However, there are high chances you will never face unemployment by running your own business.  You may encounter times when your income is low, but you will often have options for compensation. Therefore, investing in your business allows you some level of career security that most people in traditional jobs don’t get.

Greater rewards

Imagine yourself working for a company, then discovering and developing the ‘Next Big Thing.' You may well be handsomely rewarded for your contribution, but the sad reality is that your employer is the one who will reap the really big benefits. To top it all off, they will get most of the credit for a job that may have had little to do with them.

Think of the same scenario, only this time you are working for yourself. Investing in your business guarantees that when you make a big discovery and money starts flowing in, you get to keep all the profits. Of course, this is more complicated than it sounds, but there is no doubt you will generally get greater rewards for innovations you have worked on yourself.

Unlimited income potential

Perhaps the most common advantage cited for investing in your own business is the potential to earn unlimited income. Despite this cliché being old, it is very true. It is not impossible to work at a traditional 9 to 5 job, and earn millions of dollars. However, the thick competition for the corner office keeps the number of people earning that much at an absolute minimum. As a result, most people holding traditional jobs will, if lucky, rise to the top of their job classification.

In the meantime, someone who runs their own business can earn as much as their energy level, ambition and talent allow. Theoretically speaking, self-investing entrepreneurs can even establish an entire new industry. In addition, the fact that you will be at the forefront almost guarantees an unusually high amount of income.

If you are just starting out and you’re looking for expert business advice, contact any of our business consultants at freelancer.com.

Plenty of options for retirement contribution

Working for someone else limits your retirement contributions to the amount the person you’re working for allows. Depending on how much you earn, you may or may not able to put extra cash into your Individual Retirement Account (IRA). 

When you are self-employed, you can come up with a retirement plan that features more generous contribution limits. For instance, your employer might be limiting your 401(k) retirement contributions to 10% of your income, while a self-employed retirement plan can allow you to contribute up to 20%. It is not difficult to understand the impact investing in your own business might have on your retirement plan.

Get a chance to do what you love

Most people enter a new career or job in hopes of finding a better-paying one in the future. Let’s face it; our ultimate dream job is one that offers the best combination of benefits and security, as well as matching our skill set and interests. The difference between this and investing in your business is the latter gives you a higher chance of doing what you love.

This love is one of the main reasons people start their own business in the first place. Therefore, job satisfaction is definitely an advantage for entrepreneurs. More significant is the fact you will be doing work you really enjoy and are more likely to give it your all, thus earning more money.

Gives you more discipline

‘Live within your means’ is a popular mantra for success in personal finance that applies in business as well. Investing in your business means you will be forced to live within your means if you want to succeed. When it comes to buying stuff for your business, such as new equipment or paying for advertising, you only do it if you are sure you can afford it.

Investing in your business makes it easier for you to operate it at a sustainable level. This gives you a sense of discipline, because you will not depend on the business’s resources or overspend if you want it to thrive.


Investing in your business has many more advantages that cannot be covered in one reading. Some of the significant ones that haven’t been mentioned include fewer taxes and more pay off, a chance of early retirement, and collecting a big windfall if you decide to sell up once it has grown.

Investing in your own business means you are investing in your best asset; you. Starting up might be a bit cumbersome, but over time you will undoubtedly earn more from investing in your occupation than any other investment you will make elsewhere. Most importantly, you will be creating a tangible asset which might open up a plethora of opportunities and possibilities. Investing in your own work capacity is one of the best decisions you will ever make.

If you have any comments or questions, feel free to leave them in the comment section below.

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