Keeping your Business Profitable When The Market is Down
- February 7, 2022
- Written by : Elizabeth Beall
Business owners are getting more and more creative.
We, as business owners ourselves, have to continuously find ways to stay profitable, to stay in business, and to stay in a growth phase.
Much easier said than done.
Most of us have turned to trading, stocks, investments, cryptocurrency, Bitcoin, and more, which of course are risky and at times, unreliable. Unfortunately, now we are watching the Dow slip from standing strong and positive, to not so strong and positive, and we’re seeing stocks end lower in volatile trade.
Although some of these dramatic decreases were of course expected. The question is however, how can you prepare for times like this, when the stocks fall, and you are still a business owner somewhat dependent on increasing profits through investment opportunities?
Don’t put all of your eggs in one basket.
If you have ever made investments for your business, then you are familiar with the term “diverse portfolio.” This is an umbrella term which covers bonds, equity, stocks, and other varying assets.
There is a reason it has been named diverse, rather than uniform. Having multiple avenues allows business owners to not put all of their eggs in one basket, otherwise known as not allowing all of your risk to fall under one stock, etc.
To learn more about how to develop a diverse investment portfolio, visit here.
Talk with a financial advisor.
One wild day on Wall Street should not scare you away from investing, purchasing stocks, or others. This is where having a financial advisor becomes beneficial. He or she’s job is to make predictions about the market, wisely invest your capital, and provide explanations as to why one investment was more successful than another.
If you would like to talk with a financial advisor about your business, possible investments, and the importance of “having your eggs in more than one basket”, just call us. It’s free!
Consider seeking funding for greater investment opportunities.
The more capital you have gained, the more capital you have to invest with, take risks with, and grow with.
Keep in mind, the goal of investing, at least as a business owner, is to invest a strict amount of capital into the market, make more money, and then put that money right back into your business.
This is the healthy cycle of investing and growing your business.
Now, why would a business owner not want to invest more capital with the possibility of greater capital gain? Risk. That is where funding comes into play. If you apply for business funding, then you are automatically giving yourself more leeway to safely endure the cycle of invest, watch, pivot, and if done successfully, grow. It is both a safety cushion and a window for opportunity.
With funding, you will have access to the capital you need to continue growing your business, regardless of the market, the Dow, or others.