Karl Stark and Bill Stewart, director and founder of Avondale said their company is quite unique. According to them, their investment is concentrated in high-risk firms, but it is very interesting given that many investors 'slant' that will do it.
One business owner had told them, "My business is my retirement strategy." This perspective underscores the importance of developing a plan that is unique to your risk profile and your taste for entrepreneurial opportunities.
Here are the seven principles of personal investment that must be learned as well to keep in mind when your work is evolving into a business.
1. Create a portfolio of the 'untouchables'
When you invest in stocks, bonds, and mutual funds, it will create the conditions for 'untouchable' through your account. Investing here will reduce the temptation to use his return for short-term needs. Pension funds and accounts your children's education, more secure, protected.
2. Protecting your assets
Build your investment in such a way that when in danger, creditors can not tamper with your money. In addition to structuring the right business, it also helps to transfer assets to a spouse and children, which may be investment in real estate or retirement accounts.
3. Portfolio diversification away from your business
Look for investments in your portfolio that counter to industry cycles and business cycles. Investments in commodities may be at risk in general, but if your business is closely related to the broader economy or the public equity markets, assets such as commodities cycle counter may be of interest.
4. More conservative investing outside your business
Most investment expert recommend a heavy equity portfolios for young professionals and a portfolio of fixed income greater for older people.
Given that the business of an entrepreneur who can cover most of the "equity risk," it's good to choose a more conservative portfolio outside your business.
5. Build a cash cushion for future entrepreneurial ventures
Most of us could not pass up the opportunities that come along. That's why we became the first businessman. If your cash flow profusely, then you have more chance to save some money for a pile of opportunities that arise later.
6. Invest smart business
The best method to protect your personal finances is to make sure that your business has an approach, balanced sound for capital investment.
7. Building a great business model
Of course, the best personal investment strategy may be your own business. More than anything, your business could be your retirement strategy if it worked. Build your business the best possible way. Focus on your business and leave the investment professional.
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