When thinking about investing wisely for your small business it always good to consider the type of returns you can expect. Marketing, market research and high quality training are all investments with positive effects. Although essential, these are examples of investments that have to be revisited as markets and the industry change.
Now think long term and consider your businesses assets. What cards do you have tucked up your sleeve for a rainy day?
Why should a business invest?
Imagine how much revenue can get lost by not being able to replace tired equipment or to expand as demand grows.
To ensure the necessary capital is available when the time comes to expand a business, it is important to put away funds from the onset of the venture. An investment specifically reserved for financing a larger premises or new equipment means usual cash flow wouldn’t have to be tapped when the time for expansion arises.
The value of broad spectrum assets
Liquid assets like investment portfolios are great for allowing your business capital to work for you. The other perk of this type of investment is instant access to your money when your business is in a temporary fix.
Besides your liquid assets, it’s good to have some good old brick and mortar behind your name. According to Property News, every business should aspire to own their premises. Think about it – instead of your rent being a monthly expense, it could be a payment towards a commercial mortgage. Paying off your property slowly but surely adds to your business capital and it means you are able to expand, revamp and operate your office space as you would like to.
Property investment for your business
With the current South African interest rate looking mighty friendly and the value of property on the rise, 2014 is promising to be a great year for investing. So why stop at owning your own premises, perhaps this is the time to consider buying multiple commercial spaces to lease out.
Even residential property in your business’ name is a worthwhile investment that can be rented out for a steady income. Consider the possibility of investing in residential property that can be rezoned as commercial space and put to work as rentable office space.
When the time comes to take your business venture to the next level, selling a property investment is the substantial financial injection that can make all the difference.
Where to invest in SA property
With its status as being SA’s millionaire city, and new developments happening in urban as well as business sectors, just about any property for sale in Johannesburg is bound to be a good investment. However, the innovative development happening in Cape Town due to its Design Capital status is also worth keeping an eye on.
With 2014 being the year to buy property, it is worth taking the plunge and buying some real business assets for your company.