Need cash to start a business? Why not invest your savings?

Finding the startup capital for a business is one of the biggest hurdles that entrepreneurs face. There are a lot of traditional avenues for funding but they aren’t always viable. You could try getting a loan from the bank or finding investors, but people aren’t always willing to take a chance on your idea. If that doesn’t work, you can try some of the alternatives like crowdfunding but again, even if you’re confident that your idea will work, that doesn’t necessarily mean everybody else will be. When you can’t get anybody else to put money behind you, you’ll have to do it yourself.

Raising the money yourself is ideal, you don’t end up with large debts and you have total control over the business. Unfortunately, most people aren’t in a position to save up that amount of money, so what do you do? Well, if you can save up even a small amount, you can invest it and turn it into enough money to get your business going. The world of investment can be a daunting place and there’s always the worry that you’ll lose it all and end up in a worse position than when you started. But there are plenty of investment options that are fairly safe. Here’s how to invest your savings and build up the money to start your own business.

Set a time limit

Before you start making decisions about where to put your money, you need to set yourself a time goal. When do you want to start this business? If you’re in a hurry and you want to get going within a year, you’ll have to put your money into higher risk options with a larger payoff. But if you’re willing to wait 5 years, you can invest your money in low risk options that pay out over a longer period. Once you’ve decided on a time scale, you can start looking into the best investment options for you.

Choose low risk options

Choosing low risk investment options is key, you’ve only got one chance at this and if you lose your savings, you won’t be able to start your business. Investing in CFDs on CMC Markets is one of the best low risk options for beginners. A CFD (contract for difference) is not the same as traditional stock market investing as you probably think of it. Instead of buying the stock itself, you’re essentially betting on the market. If it goes up you make a profit, if it goes down you make a loss. The reason it’s so much better is that you only have to invest a small fraction of the value of the stock itself. Being able to invest small amounts allows you to spread your investments which gives you more protection than if you put all of your eggs in one basket.

Control your emotions

This is an important piece of advice because investors that make decisions based on their emotions rather than the facts are always likely to lose out. That doesn’t mean you can’t go with your gut and take a risk now and again, but always ensure that you’re considering the statistics and making logical decisions based on those.

Use these 3 simple pieces of advice and you’ll be able to generate the cash you need for your business in no time.