4 principles of investment suggested by Justin Urbas for new entrepreneurs

While starting own business, most business owners aim for developing a diversified portfolio. However, the task is not easy for new entrepreneurs. There are many reasons such as lack of funds or assets that affect investment decisions for these entrepreneurs. It, in turn impact negatively on long term growth of these businesses too. But, taking wiser investment decisions is possible for the first time entrepreneurs too. Here, Justin Urbas, has suggested the seven principles of investment which every new business owner should keep in mind.

Make the long term investments difficult to access:

Though the new business owners have limited financial resources, maintaining a balance between the long term and short term investments is necessary. But, the new businesses may require money on urgent basis at any time and often the new owners use the fund for long term investments to address these short term requirements. However, Urbas considers that you can protect the long term investments by being little tricky. Whatever, you are investing in mutual funds, stocks and bonds, should be made difficult to access. It will not let the long term investments to deplete easily and will help you to grow in future. For meeting the short term needs for financial resources, plan in advance. Also look for alternate sources of fund so that you can handle emergency situations easily.

Know how to protect your assets:

Proper structuring of business is important for protecting the assets. Keep your funds and investments in such way so that it does not get affected anyway if any legal issue arises. Many business owners transfer their assets to the spouses for protecting those against creditors. You can do the same with children and other family members too. Investing on real estate is another common trick among business owners for securing the assets. Incorporate the above-stated strategies to your investment practices to keep your money secured.

Make the business diversified:

Making the business diversified is another effective strategy that the business owners can take for better financial growth. The financial advisors always suggest to take risks wisely for getting the maximum returns from your investment. For instance, there may be some commodities that are considered as risky usually. But, investing on these can benefit your business. While investing, keep in mind that one size does not fit for all and review each decision from your own perspective. Creating an investment portfolio which if countercyclical for your business as well as the industry will also benefit you significantly.

The investment decisions should depend greatly on the age of entrepreneurs also. The young entrepreneurs are encouraged to take some risks while creating their own portfolio. On other hand, the older entrepreneurs should focus more on making such a portfolio that assures fixed income for them.

Build a fund for future business investments:

Your business is going to expand in future and so do your investment needs also. To meet these needs, try making a fund from the early days. Justin Urbas suggest the owners for creating a provision for handling the future business needs effectively.
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