The Money Advantage Podcast

The Money Advantage Podcast


Why It’s Not Risky to Invest in Your Business

October 07, 2019

Investing in your business can be one of the most focused, strategic, and productive financial decisions you can make.  If the environment and the indicators are right.  That’s because your business is one of your best investments.

However, if you listen to the conventional perspective of typical financial planning, you’ll be led to believe just the opposite. 

A recent conversation highlights this prevailing mindset perfectly.  After speaking to a roomful of business owners, I talked with one successful business owner.  He remarked,

“It’s risky to invest in your business.  After all, most businesses fail, and it’s better to invest your money with people who know what they’re doing.”

He's not entirely wrong, and we're all entitled to our own opinion.  However, this is a limiting belief that often holds business owners back from reaching their financial potential.  It’s like they have each foot in two separate worlds.  They’re building their business with their time, energy, and mental capacity to build a successful, thriving business on the one hand.  But on the other hand, they’re hedging their bets wondering if it’s worth investing in, or whether it’s all going to collapse. 

As a business owner, how do you build the real path to wealth?  There will come a time when you must decide whether to invest in your own business or to put your dollars to work somewhere else.  Should you invest in your business, or should you diversify?  How do you think about your business in the grand scheme of building long-term, sustainable, extraordinary wealth? 

In today’s conversation, we answer:

* Should you invest in your business?* Is it risky to invest in your business?* What’s the best way to reduce the risk of investing in your business?

We’ll share our perspective to help you gain clarity and freedom to make financial decisions that align with your value system, congruent with your goals and objectives, and move you closer to time and money freedom.

You’ll gain confidence and peace of knowing you’re making the right decision of whether or not to invest in your business.

Where Does Investing Fit into the Cash Flow System?

Deciding where to invest is just one step in the bigger journey to time and money freedom.  You need to have all of the pieces in place to produce wealth systematically.

That's why we have created the 3-step Business Owner's Cash Flow System. It's your roadmap to take you from just surviving, to a life of significance, purpose, and financial freedom.

The first stage is the foundation.  You keep more of the money you make by fixing money leaks, becoming more efficient and profitable. Then, you protect your money with insurance and legal protection and Privatized Banking. Finally, you put your money to work, increasing your income with cash-flowing assets.

Investing is part of stage 3.  It’s the step where you turn your money into more by investing in the best opportunities that help you achieve your goals.  Should one of those opportunities be your own business?

Should You Invest in Your Business?

First of all, in finance, there is never a blanket, one-size-fits-all answer.  As with making any prudent and responsible financial mov...