It is often said that small businesses are the inherent engine that allows for an economy to grow and prosper, especially in the United States. However, as statistics have shown, small businesses tend to fail majority of the time, and investing in them can be risky. Before going head first into the investment of small businesses, it is crucial to understand the risks and behaviors to consider before investing, to ensure you make a well thought out decision.
Key Takeaways:
- Small Business Administration statistics show that of the 500,000 new businesses started each year in the U.S. less than half are still open 5 years later.
- The first crucial stage in successful business investment is to research the market by talking to industry experts and potential customers.
- Small business investing is long term investing with a high risk and potentially high reward so don’t expect instant results.
“Investing in small business can be financially and personally rewarding, but it also poses a huge risk. If you go about investing in a smart, calculated way, the rewards can be incredible.”
Read more: https://succeedasyourownboss.com/5-things-know-investing-small-business/