We know from our research that alternative investment vehicles involve both elevated risk and the potential for greater reward. Business opportunities can make for great alternative investments. We also know that investing in alternatives in general can be some of the most complex of ways to deliver steady profits, and therefore deep research and understanding are necessary to survive the trip down this particular road. If you are an investor looking for a simple investment, it is recommended that you stick to well-known stocks and low-risk bonds. On the other hand, investing in a simple business opportunity may be something worth considering if you are a well-seasoned investor, that is not risk-averse.
However, with higher risk can comes greater wealth creation. Today I want to discuss an alternative I have not mentioned in quite a while. I want to discuss business start-up investments. These are opportunities to invest in businesses, that will generate income and deliver steady profits. There is an untold amount of small business funding opportunities, and venture capitalists are constantly ferreting out the latest Apple-Microsoft type wealth generators, that can provide a simple, yet high-yield investment. While the Venture Capitalists invest in 6 to 10 business opportunities in hopes of returning 1 to 2 home run hitters, often when the dust clears the investment returns are staggering.
Angel investors on the other hand do not typically work in the same fashion as VC’s, and generally have much more limited funding, so usually they will invest between $10,000 and $250,000, but can produce up to a $1.5 million investment amount for the right opportunity. These are usually retired executives working with their own savings and investment dollars. However, these investors are looking for high ROI, as the elevated risk calls for. They’re in the game to win, not merely support an endeavor.
The way crowd-funding is producing capital these days has made drastic changes to the business opportunity investment scene, as micro-loans are possible from great numbers of people that believe in a particular project or business plan. Sites like Kickstarter, FirstGive, indieGoGo, GoFundMe and a host of others are producing investment capital for young start-up businesses and non-profits at record amounts. Naturally the same risk levels are involved, so the level of surety in the success of the enterprise is not certain, by any means.
The right business opportunity can produce the best investment return and also a sense of satisfaction when a winner is chosen, and each alternatives investor that chooses this particular path will have their own reasons for investing in a new technology, service or product based enterprise, but the risk may be well worth it. Identifying the right business plans that reflect a sound investment is quite difficult, so much higher risk is involved. The expectations of a venture capitalist therefore is a larger share of the profits the investments produce to help cover the losses on the majority of the investment bundle they put together.