Buying a Business for 1 Crore
Recently one of my IT friend who made a fortune in his early thirties ask me that, He has 1 Crore of Capital to Invest. Where Should He Invest this Capital for better returns?
Well, there are several Investment options available in the market starting from simple stock investing to professional wealth management services. But What I want to say here is that, Why not buy a Business for 1 Crore? Why not give a chance to buy an already established Business?
There are several advantages of owning your own Business rather than investing in someone else’s Business (Stocks).
What I like about owning your own Business is that, You have a full or at least partial degree of management control over that Business.
Say for Example, Take the Example of this Blog. This Blog is my Internet Business. It’s the Investment of my Time & Money Both. I daily spend 8-10 hours behind this blog which is the investment of my time. And I regularly buy new Personal Finance, Business, Investing & Entrepreneurship Books which is my Investment of money behind this Business.
Now, I can easily invest this money and time behind buying stocks. But in that case, I will not have any management control over the companies which stocks I buy. So the returns will be limited. But in case of this Blog Business, I have a full management control over this Blog. And thus, the returns are very high.
And that’s why Buying a Business for 1 Crore is a good idea rather than handing over your capital to some wealth manager. Of course, investing 1 Crore of capital in one business only is a risky thing. So I won’t advise doing this to all of you. If you are highly informed and having well Financial IQ than and only go for it.
Otherwise, Simply hire a professional fund manager and he will look after your Fund.
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