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4 Investment Tips for Small Business Owners

Running your own business is no joke. It takes a lot of time, commitment, and grit for a business to succeed. Not to mention, being a business owner oftentimes means a lot of stressful days and long nights. However, seeing your own idea manifest and become an actual growing business is well worth the time and energy. And many find self-employment to be the most fulfilling type of work.      

Of course because of the pandemic every business has taken a hit in one way or another. Consumers who were nervous about their own job security stopped making purchases. Businesses had to pull back on manufacturing due to supply issues. And everyone — consumers, small businesses, and large corporations — is dealing with inflation and volatile markets because of it. To put it simply, these are challenging times, which can be stressful for small business owners.  

If you find yourself in this position, you may want to focus your efforts on investing. This can look like investing in yourself and your business’ livelihood. It can also look like investing in specific parts of your business for optimal growth or expansion. Not sure where to begin? Keep reading for four investment tips for small business owners. 

1. Plan Ahead for Retirement 

Retirement might not be top of mind when you’re in the nitty-gritty details of running and operating your own business. However, thinking ahead about where you see yourself in twenty, thirty, or even forty years is important. Doing so can help you plan for your dream retirement life, allowing you to focus on your personal goals. It can also help establish how much you need to be saving to live up to your dreams. 

You may be familiar with a 401(k), a financial retirement savings plan that larger companies offer their employees. Being self-employed you may think that a 401(k) plan is out of the picture, but it’s not. There is something called a solo 401(k) specifically for small business owners who don’t have any employees. With this plan, you can contribute a specific amount of pre-tax dollars each year. Essentially, you can reap all the benefits of a company-provided 401(k) plan without the hassle of working with their specific broker or facing certain restrictions. 

2. Focus on Growing Your Business Through Marketing

Being profitable means growing your business. While you may have launched your business with an offering that sold off the shelves instantly, your customers will eventually crave more. You will likely need to expand your portfolio of offerings. You will also want to find ways to reach new audiences to continue to be fruitful. 

One of the key ways to grow your business today is through online marketing. This can look like running a social media campaign before a product launch. It can also look like developing an email newsletter campaign. It may entail optimizing your SEO to ensure your business shows up on the first page of search results. While you may need to put down some money upfront for these marketing efforts, your business will likely see the return on investment sooner rather than later. 

3. Don’t Be Afraid to Contract Out Work

As a business owner, it’s important to remember that you aren’t going to succeed at everything. While you may have had the original idea for your business, you can’t and shouldn’t do it all. Not only will you run yourself into the ground, but your business will likely suffer as well. Just because you founded the business doesn’t mean you have to suffer through all parts of running it.  Remember, tasks that may be your weakness are someone else’s strength.

Thankfully, hiring freelancers or contractors is easier than ever with platforms doing the searching and finding for you. Some of these platforms include LinkedIn, Indeed, and Upwork, which all help you find freelance or contract talent. You can also ask friends in your industry for specific recommendations. Hiring contractors to help take the load off your shoulders can save you precious time, so the investment will pay off.  

4. Think Long-Term With Diversification

Lastly, being a smart business owner means not putting all of your eggs in one basket. The pandemic taught businesses that they need to remain flexible and vigilant. Companies don’t know what to expect tomorrow let alone a year or five years from now. Diversification can be instrumental in your future financial health, allowing you to pay more attention to your business needs today.  

Working with a financial expert or planner can be helpful for those new to investing or those looking to broaden their portfolio. They can help set you up with a plan that takes into account market instability. You can also speak with them about ways to be financially responsible in the long-term as a business owner. 


Let’s face it, investing isn’t the most appealing part of being a self-employed business owner. And yet, the rewards you’ll see down the line, both financially and personally, can be life-altering in many ways. Think about what you’re going to invest in and how it can change the future of your business. Keep these tips in mind as your business continues to grow and thrive. 

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