The recent stock market sell-offs and volatile fluctuations of value have many Americans concerned about their financial future. As we head into the holiday season and the end of the calendar year, the Dow Jones Industrial Average and the S&P 500 have lost nearly all of their gains in this bull market year of 2018. For many investors this crisis demands a smart investment strategy, as many financial experts warn of an impending bear market.
There are always a handful of winners in every market situation, however. Amazon CEO Jeff Bezos has a personal empire that is gaining ground. While he makes more money in a few hours than most of us do all year, the average American should consider owning their own business as a hedge against the uncertain, volatile activity of the stock market. Where there is very little you can do to personally influence the stock markets, owning your own business is one investment you can have total control over. Sure, you can perform your due diligence when investing in stocks, looking at balance sheets, cash flow and a myriad of other metrics, but your portfolio on the New York Stock Exchange is ultimately dependent on factors that are far beyond your control.
That’s why we recommend purchasing your own business. You call the shots and you are in complete control over your investment. Obviously, business ownership can come with a lot of risk. Your success can still depend on market factors that are clearly beyond your control. As a private business owner, you have the potential to leverage your enterprise to compensate for fluctuating market trends.
A professional business broker like Shawn Davis and his team at LINK Business would consider buying your own business as purchasing yourself a career.
Investing in the stock market requires a lot of money up front to invest. Let’s say you put in $10,000 into a mutual fund or hedge fund. Assuming you gain a 10% return on your investment, (which would be considered a decent gain), you would net $1,000. The problem is you have to risk that money up front, into a random and sometimes volatile market.
Buying a business for sale still requires a large up front investment, but the potential for growth is only limited by your talents and expertise. Business owners generally have the flexibility to run their company the way they want to. Your business model is going to be dependent on how you decide to run with it.
Business owners can receive massive tax benefits that investors simply cannot. Deductions on business expenses apply to any purchase you make that is related to your operations. When making a business merger or acquisition, you will incur a significant amount of costs for planning, negotiating, brokering and conducting the necessary due diligence on the transaction. Portions of these costs, as well as the cost to acquire the business in many circumstances maybe immediately deductible. Also, by filing with your state as a corporation or an LLC, you have access to lines of credit with the ability to obtain loans and secure more favorable credit terms with various lending institutions. These advantages are clearly unique benefits to purchasing your very own business.
Making this even better, buying the right business can produce and hold more value, even when compared to a double-digit growth in the stock market. Your investment can be resold at a later time with even more potential for a profit. Buying your own business can provide you and your family with long-term security while paying you an immediate salary. Purchasing an already up-and-running, established business comes with many advantages that investing in stocks simply cannot provide. Buying an existing business can offer immediate cash flow that should enable you to pay off your bank loans, provide a salary for yourself and give you more capital to invest into the future growth of your business.
For anyone looking into the potential to protect themselves and their family from a major market decline, you have the opportunity to become your own chief investment officer acquiring your own business. If you have already been impacted by the downturn of the NYSE, or you fear an impending layoff, investing in your own small business may be the right venture for you.
Don’t leave your long term financial stability up to the Wall Street casino.
Forget about the next financial crisis and take control of your future today. Contact Shawn Davis and his team at LINK Business in Los Angeles, California. He is an experienced business broker who can help you find the right business for sale in your area. He handles all types of businesses and can find the perfect fit for you, your family and your lifestyle. Own your piece of the American dream: invest in a small business with Shawn’s help today!