Running your own business is an investment in itself. It makes sense to invest some of the profit elsewhere to generate multiple revenue streams.
What’s the most common complaint you hear from small business owners? It’s usually the sheer lack of time. Most small business owners tend to be hardworking, very driven people who are absolutely stretched to capacity.
A new survey by the Australian Bureau of Statistics found that almost sixty percent of NSW small businesses worked more than 40 hours per week, and that one third of small business work 49 hours a week. A business that you own is like a small child: it’s demanding, it drains all of your time and resources and you love it to death.
NSW small businesses worked more than 40 hours per week
Little wonder then - that small business owners have no time to think beyond their immediate world. The rigorous slog of managing the day-to-day operation means it’s too difficult to look into anything else.
Small businesses are typically overworked and understaffed. It’s also rare for small business owners to switch off when they get home. Running a business can be a 24 -hour, around-the-clock occupation filled with exhaustive BAS statements, chasing suppliers and invoices and fine-tuning marketing strategies. Small business owners can often feel like they’re struggling to keep their heads above water, rather than enjoying their success.
Yet it has been shown that diversifying investments is highly prudent. It’s the “don’t put all your eggs into one basket” fact of capital growth. It makes a lot of sense to have a stable second income that requires little management. So if your business has turned a corner and you’re starting to reap the rewards of your hard work, it makes sense to invest some of the profit elsewhere to generate multiple revenue streams.
Australians have long had a love affair with property. Property investment continues to be a key staple of our market. Despite the occasional market fluctuations, Australia is also highly attractive to overseas buyers, which in turn continues to push up property prices, and keeps the fires of enthusiasm raging.
It’s the “don’t put all your eggs into one basket” fact of capital growth. It makes a lot of sense to have a stable second income that requires little management.
You’ll always find stories in the media about the housing bubble about to burst or scare stories about plummeting prices. However it’s worth remembering that if you look at Australian property, historically there has been an upwards trajectory in terms of growth. The median house price in Australia doubles every seven to ten years. The population is rapidly growing and there is always demand for housing. When the Australian market rises too fast the worst that happens is a mild correction where prices plateau for a period before going up again.
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So because of this, investing in property in Australia seems a sound decision. Having said that, where many investors make mistakes is in the wrong kind of investment. A common trap is buying the wrong kind of property type in an already heated part of the market. A good example would be investors who purchased off the plan apartments in Melbourne in the last few years. In Melbourne there’s been an oversupply of apartments and so buying off the plan has led to a sudden drop in the property’s value. Or think of investors who bought into Perth at the height of the mining boom and are now left with an overpriced property as housing prices have plummeted and demand has shrunk.
There are many armchair speculators and amateur investors who feel confident that they can pick where the market is going. But the truth is that the Australian market is highly complex with each area having its own peculiarities. It’s only through careful research and a study of long-term trends that you can safely pick an area to invest in.
To ensure you have a stable second income with minimal risk and effort, you need to speak to a professional. DPN specialises in helping small businesses create a steady stream of wealth. We do this through tailoring a plan that fits in with your income, your requirements and your future plans. It means you can sleep soundly at night and concentrate on your core business. Having a solid secondary source of revenue gives you tremendous safety and flexibility.Talk to us today to find out more.