Running a successful business is no easy task. After all, recent research reveals that four in ten small companies don’t last for five years. After the recent political and economic uncertainty in 2016, many were also expecting this rate to rise further. However, this doesn’t mean that you should be overly pessimistic, and if your business is doing well, you should continue to forge a path to success. Here, we discuss the current economic situation and how you can reinvest your earnings at the current time.
The Current Economic Situation
Against expectations, the broad outlook for the UK economy is positive. Recently, the British Chambers of Commerce have announced that UK buying habits have shown strong resistance to the Brexit vote.
This level of robust customer spending means that the outlook for trade and investment for UK businesses is broadly positive. The economy is expected to grow a further 1.4% in 2017, which is almost at pace with the 1.8% growth we witnessed in 2016.
As a result, if you’re looking to invest some of your wealth, now could be the time. Let’s take a look at how you could make the most of the broadly positive economic situation.
How Can You Invest?
To help your wealth grow, you can invest internally within your business or externally. First, let’s look at your internal options.
Staff – if your customers are keen to keep spending high, then let them. Investing in new staff members means that you’ll be able to service larger orders in a higher volume, boosting your revenue.
New Products – Likewise, consider diversifying your offering to take money from your competitors. By investing in market research, you can find out what your customers really want and cater for them.
These two tactics will help you strengthen your business and generate new revenue. Sometimes, you have to spend your wealth to save even more. However, although these will help you accrue wealth, it may also be worth diversifying your assets through external investments. Your best options here are:
Property – the UK housing market continues to boom and shows no signs of slowing down. Housing is generally considered as a solid investment; particularly buy-to-let, which is low risk.
Stocks and Shares – If your business is doing well, then it’s likely that others are, too. So, it could be worth investing in other businesses. This is a higher risk strategy than investing in houses, but the rewards are potentially higher, too. Take a look online for advice on what investments could be profitable.
Forex – Finally, consider being bold, brave and bright. Geo-political tensions such as Brexit cause currency fluctuations and changes. By investing some of your money in forex trading, you could make money on these fluctuations. This is a high risk, strategy, however, so educate yourself before you begin.
To conclude, the current economic situation looks positive, so consider how you could invest to maximise your wealth carefully.