Nowadays, a person who would like to invest his money in the stock market doesn’t face the lack of market offers. On the contrary, there is a wide range of them that will suit every person and his preferences. However, there is one negative thing: no one tells a person how difficult achieving a good result here can be, because the trading world has plenty of pitfalls and soap bubbles.
On the other hand, it’s the opportunity to create your own business, and invest money in your own business, where everything depends solely on you and the instruments which you have correctly chosen.
In this article, we will figure out the reasons why having your own business is better than money invested in the investment bubble that will burst. Perhaps, everything is vice versa?
Should you invest in your own business or someone else’s one?
Owners of successful companies pretty often invest all the received income back in their businesses in order to expand as quickly as possible. Indeed, why should a person invest if his own business is more profitable and brings more money? On the one hand, the good thing about having your own business is that you fully control it yourself, and your income is limited only by your talents and opportunities. Besides, you are your own boss, so you don’t have to work for the man, etc.
In the long run, a business can make its owner a really rich person. However, are all these advantages of being a business owner really that good?
Fortunately, nowadays we live in the age of e-commerce and you don’t have to be afraid of the above-mentioned issues. With the help of such things as, for example, the WordPress platform and different WooCommerce plugins, even a 4-year-old infant can create his own business at minimum investment.
A fast return on investment in business motivates owners to invest income received from it in their business. Along with that, they often have a goal to expand the business and steal a competitive advantage. In a few years, business income can become the basis of big capital. However, this doesn’t mean that an entrepreneur should ignore the stock market. Let’s have a look at some advantages of stock market investing:
- In the investing process, one can receive income without major effort. Along with this, it is only enough to correctly choose the right project to invest the existing capital in.
- Potential opportunity to receive big amounts of profit. At this, one has to remember that the possible amount of profit directly depends on the investment volume.
- Investing is always promising. If only once you managed to correctly evaluate the situation and invest in a successful project, you can secure yourself a better future for many years ahead.
- Investing allows you to protect the accumulated capital from the inflation effects.
Investing in the stock market is like a Jenga game
However, as I described it above, despite the great liquidity and possible good profit in the first instance, investing is associated with risks, and, as in the Jenga board game, all the received profits can drop at any moment.
Indeed, we can step by step multiply our profit.
- Investments are always associated with risk, as there is always a potential threat of the invested capital loss (either full or partial).
- In order to make investments, you should have the initial capital. The result of your investment activity will eventually depend on the amount of it.
- A particular knowledge and skills are required in order for you to correctly evaluate the situation and choose the right investment area.
- In the trading process, there is always a probability of a major deviation of the particular asset’s price from its fair value, the so-called bubble.
I guess that now you see the problem as clearly as I see it… Simply put, all the reasons are more or less obvious except for the bubble. It’s very difficult to forecast the bubble deflation because it usually represents a breakup of the outdated economic model (a catastrophe) and even if a new model is already known, the exact moment of bubble burst just can’t be forecasted. So what is it actually and how to avoid being caught up in it?
How can you avoid losing money in a soap bubble?
How a soap bubble can be described? Well, it’s beautiful from the outside and empty on the inside. First, it gets bigger and bigger, and then – BOOM, and it bursts. The same thing happens in the stock market on the regular basis. Shares of different companies keep on rising and one day they fall and burst like a bubble. That’s the moment when it becomes clear to everyone that it was actually just a bubble. How can you recognize it in advance and avoid investing your money in literally nothing?
Humanity most likely won’t be able to completely get rid of bubbles. Greed for the easy and fast profit drives both newcomers and experienced market players to take risks even if they have a complete understanding of all the sad consequences of investing in a bubble. For example, today analysts forecast a bubble in the sphere of new technologies: developers often overstate their use for humanity and falsify progress reports for work. In fact, this whole sphere itself is so complicated that it’s not easy to figure out if there are developments or not. It becomes even more complicated considering the fact the data is restricted from strangers so that it’s not stolen. So what can an ordinary investor do? Use the golden rules of investments: don’t invest in what you don’t understand. Don’t follow the mainstream fashion for the investment and don’t follow the crowd itself. Follow your investment plan and carefully analyze all the assets you purchase. Everything should be as clear and understandable as possible.
Your own business in exchange for investing in someone else’s one
Before investing in things you don’t know well, ask yourself the following questions: “Why should I invest in something I don’t know within someone else’s business if I can easily make my own business in the sphere that is familiar to me?”
Indeed, you should agree that investing in the interests of your own business is much more interesting, practical, and profitable since the success will depend only on your talent and ideas.
Besides, in the modern world of highly developed Internet and e-commerce industries, it’s not that hard.
In order for you to easily understand how simple it is, let’s have a look at the development way of an imaginary character named Jack. Let’s say, for example, that he’s engaged in brewing, and his dream is to create his craft beer brand and make money. At the same time, he keeps on working for the brewery owner and always gets the same salary, which he tries to invest in different bubbles to earn even a little bit more money.
What should Jack do to make some money without risky investments in stock market bubbles (while doing what he really likes)? As we have already mentioned it many times above, nothing is impossible, and in today’s world, everyone can start their own business!
Let’s say that Jack works in his small home brewery. He brewed his first several kinds of beers, made great high-quality product but faced the problem of becoming a brand and selling his products.
Of course, here you can see the advantages of modern e-commerce in all their glory. Jack didn’t become a hostage of another soap bubble, because Jack knew the following things:
- He can easily create his WordPress website without having any programming knowledge, so he did it. His website has a nice beer atmosphere in the best traditions of Bavaria represented by amazing articles.
- He installed the free WooCommerce plugin and created his first products represented by different kinds of craft beer.
- Jack didn’t want to lose conversion but wanted his customers to easily find products, filter, and sort them according to their preferences. He also wanted his store both to look beautiful and have some unique options, thus, so he installed the WooCommerce Product Table plugin, due to which he received all these benefits.
- Eventually, thanks to a convenient and beautiful store, his skill, and delicious kinds of craft beer, in particular, Jack received his first customers, thus, he created a new brand. In the future people like Jack will invest their money in his brand.
Of course, Jack and his beer brand is just a representation of each of us, who would like to have his own business but keeps on investing in someone else’s one, hoping that this company (in which he invests) will be OK and he will receive a little profit. However, as the New Jack says: “What should I do this for? I can do it myself. I can create a business where everything will depend solely on me and my decisions, and with the help of the right instruments, I can easily achieve this!!!”
I’m sure that you understood this analogy correctly, and the next time you will think twice before investing your money in someone else’s murky business which has great risks of bursting just like a soap bubble.
Thus, my friends, make your own business, create your brands, use the right instruments, and remember that WooBeWoo will always help you with doing this!