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How Do I Invest In a Local Business

Why Should You Invest in a Local Business? That’s a good question. See my blog post about that here.

If you already know you would like to invest well keep reading below!

invest local bizAre You Looking To Invest In Local Businesses? 

When you want to be able to grow your money by investing, it is going to take a little bit of finesse and a good personal finance strategy. A lot of people will look for secure, stable investments like mutual funds and also work to diversify their portfolio by making sure that they invest in bonds and stocks. However, there can be a great deal of profit to be made from investing in some of your local businesses. These are some steps that you can take to select the perfect businesses that will have the highest potential for profit.

Finding The Business

Take some time to network with the people from your community that may have experience with some of the local businesses, either by investing or having their own. You can also see about finding a group of current investors that you talk talk with about their experiences in the region. It is always going to be in your best interest to find a number of entrepreneurs that will give you advice on looking for startup capital or helping you to evaluate the worthiness of potential investments.

profit graphTalk With Your Lawyer

When going into such a major investment, it is a great idea to talk with your lawyer so that you can determine the best way to proceed. If you are going with a lawyer that is out of your local area, he or she may also be able to give you some sound advice on some of the entrepreneurs and local businesses that will be prime for investing.

Set Up Some Interviews

As it starts to come down to the time to invest, you need to think about setting up some interviews with the entrepreneurs that have any of the experience and business ideas that really caught your attention. If there are businesses that you are already interested in, make sure that the owners are part of the group to be interviewed. Discuss business plans and find out what each business needs so that you have a clear picture of what your investment may mean to them. The goal should always be to enter into a partnership that is going to be worthwhile for every party that is involved.

Helpful Hint – Investing in a business that is non-profit can bring about even more benefit to you, as it will be tax deductible. This rings true whether or not the particular investment ends up leading to personal profit.

Be Careful

When you are going in as a first time investor in local business, you need to take the time to do your research and make sure that you are working with people that have the experience and goals that are worth the investment. With that being said, it may be worth it for you to stick with some of the franchises or businesses that are already well established.

In the end, you will see that it can be very beneficial to give back to your community by investing in local businesses.

Case Study We Had

We are constantly expanding our portfolio of investments. We currently have stocks, bonds, CD’s, 401k, Roth IRA’s, Gold, Silver, Commercial Real Estate, Residential Rental Properties, and now, ownership of a local water damage restoration business – WaterDamageColoradoSprings.CO. We sought out ownership of this company simply because we know the great ROI these type of businesses can have and it will be fun working on it over the years. We have had the business for about 6 months now and we are on track to be profitable within 12 more months or so. Once we grow this business over the next handful of years we can turn around and sell it for high six figures and possibly into 7 figures. We will keep you updated on how things progress.

Why Invest In Stocks? – Read This Compelling Argument

After the last stock market crash, (yes it was big enough to be called that) many people were hesitant when it came to investing in the stock market. The only thing is that crash presented one of the best opportunities in history to buy stocks. For years afterward, people could buy stocks at huge discounts. Take into consideration for a moment that most people who lost money on paper during that crash would have likely gained it back and then some. They would have raked in had they bought even more stock at a discount.

No one wants to stomach a stock market recession, but those ups and downs are stock market crashinevitable. Nowadays, the stock market is flourishing, while the economy itself is still struggling. This always happens, however, as the stock market tends to lead the way. Some skeptics want to point to the fact that the stock market is set for another fall because it’s inflated, but it’s always inflated folks. That’s the way it works. And just because the stock market is inflated as a whole doesn’t mean that it’s a bad idea to invest in individual stocks.

Think about it for a moment and consider the fact that the stock market is one big entity. But do you really expect all the blue chip companies to crash themselves? No. If a stock market recession were to happen, a company like Hershey would see its stock price drop. However, you would imagine that the company would recover and thrive, and you would have been presented with another great buying opportunity.

If you don’t want to invest in spec stocks, great! Guess what, I don’t either. However, buying and holding blue chip stocks and getting a nice return is a great option. Don’t sit there wondering if the stock market is going to drop again when there is money to be made. You need to focus on how to get a good rate of return right now on the money you invest.

Dollar cost averaging is always part of the game, whether you’re talking little dips and increases or a major recession and subsequent recovery. So are you going to put your money in a CD that will fetch you 2 percent, or are you going to try for that 8 percent return that stocks on average just love to provide. That interest compounded makes a huge difference. That’s the numbers game you ‘should’ be playing.

Why You Should Invest In a Local Company

When most people think about making investments, they think BIG. However, the smartest kinds of investments can actually start at home. Here are some of the reasons why you should want to invest in a local company.

You Can Buy the Whole Business

If you make an investment in a major company, you’ll just be another shareholder. If you make an investment in a local business, you should be able to afford to buy the whole thing outright. You’ll be making a real investment, not just throwing some money at a corporation.

Buying Local is Less of a RiskWebsite home page slide

If you buy a business in your area, you’ll easily be able to do market research. You’ll also be able to monitor the business without issue. You’ll be able to catch problems right away, and will never be caught off guard. You’ll be able to avoid a lot of common problems right out of the gate.

Everything Is Already Started

If you invest in a local business that’s already up and running, you’ll save yourself a ton of work right from the start. Your business will already have fully trained employees and a customer base. You won’t have to focus on the grueling work of getting a business started. Instead, you can focus on taking your business to the next level.

You’re Improving Your Own Community

In order for a community to thrive, people need to pump money into it. When you invest in a local business, you’re helping to make your own community a better place to live. You’ll be giving your neighbors new jobs, a new place to visit, and new options. You’ll be strengthening the local economy and may even be improving the real estate value of your own home.

If you’re going to be making an investment, you should definitely look at home first. You know the market, you know the people, and you’ll be able to tell whether or not an investment is a sound one. You’ll already have the kind of information that investors are willing to pay a fortune for.

St. Louis Heating and Cooling is an example of a local company that was acquired for next to nothing when the economy tanked in 2008. Owner, Mr. Melancon, made an offer to the current business owner, expecting to be turned away and to Melancon’s suprised his offer was accepted. He has now turned St. Louis Heating and Cooling into a household name in the St. Louis and St. Charles, MO area.

The importance of local investments can’t be understated. People need to put money into local businesses if they want communities to thrive. If you’re thinking about making an investment, make sure you look at the local options before you look at anything else.

And remember, you’re offer will never be accepted if you never make the offer… Get out there and make it happen!

Who Rooster Research Is

Rooster Research provides stock market research, trend trading reports, and a free investment newsletter, offering yet another personal perspective for traders and investors. Our reports focus on various trend, contrarian, arbitrage, trend trading, and expertise-based ideas for trend traders and stock market investors to consider. In the markets, there is no such thing as an all-purpose, holy-grail, approach to the markets. To paraphrase from a great film, “There is no spoon.” Every strategy becomes a “broken clock” at some point, so the best strategy is to have “no strategy”. We humbly suggest instead the continuous pursuit of both “new” and “old” ideas, self-examination and honesty about one’s goals in the markets and an enormous respect for risk and return. We hope that our free investment newsletter which includes free stock market research commentaries and trend trading reports can mark the beginning of a longer relationship with our readers.

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