You may be pleasantly surprised to find out that your business is turning a profit. But are you doing anything with that profit? If excess funds are sitting in a standard business bank account, they are probably not doing much good for your company. Put that money to work, providing your business with additional funds to use when times get tougher. Consider the following investment options:
- U.S. Government bonds: The most stable choice, with a fixed return
- Mutual funds: Riskier than government bonds but provides higher returns and easier to liquidation when your business needs the money
- Exchange traded funds (ETFs): Similar to mutual funds but can be traded like stock; liquidity and potential returns are greatest but so is risk
An investment counselor or your financial institution can provide more information about each of these investment options.