Do you know why most people dream of running their own business? While there is always a certain sense of satisfaction to be found in having created something that works and that is growing, it’s fair to say an entrepreneur finds the financial reward more satisfactory.
Ultimately, you run a business to get rich – or if you prefer to put it in lesser straightforward terms, your goal is to make a monetary profit. And this is an important thing to bear in mind as an entrepreneur because ultimately it can change your perspective when planning your next business move. Indeed, if you think of businesses as an income-producing engine, it’s fair to say that it doesn’t matter who launches the company. From your point of view, all that matter is to be in a position where you can run a profitable business. In other words, if you are not too keen on launching businesses – and it’s a good idea if you’re naturally impatient or nervous – you can still make your fortune through running them. Here’s how it works.
Why You Don’t Want to Launch a Business
First of all, most business owners would tell you that the hardest part of running a business is actually to start it. Omar Mamoon, the entrepreneur behind the cookie dough company Dough & Co, remembers his journey. The most difficult part for him was to overcome the mental barriers that prevented him from getting started in the first place. Indeed, even when raising capital isn’t an issue through self-funding, commercial loans or smart investment options, the first hurdle is a capitalistic culture. Indeed, from a young age, people expect the path to success to be about the pursuit of the dollar in the corporate ladder. However, when you create a business, you have to break away from the normal path to build something that fits your needs, even if it doesn’t meet your family’s expectations. Emotionally, nervously and mentally these are difficult challenges. But you can avoid them by choosing to skip the launching step!
#1: Buy an Existing Company
The easiest solution to run a business without launching it is to buy an existing business – one that has been created by someone else. It’s a huge decision that you need to plan carefully. Each year more than half a million companies change hands, so you won’t have difficulties finding something that catches your eye. While the advantages are clear – you’re buying an already established company with a customer base – you need to familiarize yourself with the assets and the market before you can make profitable decisions. And there’s always the risk of a hidden problem, so don’t buy without thorough research.
#2: Purchase an Income-Producing Property
If you’re worried about running a company, you can consider investments that practically run themselves, such as looking into commercial real estate loans. Indeed, this kind of loan is designed to encourage the purchase of income-producing properties, such as apartment blocks or office buildings, for instance. Your commercial involvement is limited, which means that it’s ideal for investors who lack business practice. However, here too, a preliminary study of the property can make a great deal of difference to secure your loan.
#3: Consider Companies Abroad
If you’re looking at businesses as an investment strategy, your money is part of what will run the business. If you don’t want to get down to the day-to-day business strategy, you can choose to purchase a remote company and let it run itself. Acquiring a shelf company in Spain, for instance, offers a strategic trading position – you have access to the EU – with the advantage of not having to be physically in the country. Using Europe as a starting point, you can expand to profitable countries, such as Ireland which has a low corporate tax, or Bulgaria, an emerging hub for entrepreneurs. The best European country for business is Sweden, with the highest profitability for SMEs.
#4: You Don’t Have to Own a Business to Make Decisions
Last, but not least, you don’t need to own a company to run it. In fact, as an investor, you can ask to be part of the board of directors and to have a say in business decisions. Ultimately, for investors, it’s a good way of getting to understand a specific market while ensuring that no unnecessary, costly business decisions are taken. In short, you can invest in a company and help your investment to work harder for you. Your best bet is to pick promising startups as other companies already have a board of investors.
Can you run a business without launching or owning it? The answer is yes. And naturally, with a healthy dose of financial savviness, you can grow your wealth too.