With so many crowdfunding projects and options available, it’s tough to choose what to support. Do you want to help that new tech gadget get made? What about that movie or video game? Creative arts are great, but why not try looking in our own community for investment opportunities. Moving money from Wall Street to Main Street is becoming more and more popular. Here are some great reasons why you should consider investing locally too.
- Growth Potential – Local businesses make up 50% of US economy but receive almost none of the investment. Most are highly profitable. Recent data from the IRS shows that start ups with one owner are often as much as eleven times more profitable than corporations. Out of date laws that kept the 99% of Americans that aren’t billionaire investors out of investing, are now changing. This makes it easier for everyone to support local causes and small businesses.
- Multiple Returns – By investing in local businesses, you get two points of return – money in your portfolio and positive growth and changes in your community. It’s great to see a monetary return on your investment, but it’s even better to know you are doing your part to build a strong, stable community. Every dollar you invest in a local business goes back out into the community through new jobs, higher wages, maintaining parks and recreation centers.
- Superior Access – Investing locally allows you to get to know the business from the inside. You can meet the owner, talk to the staff, sample the goods and services, learn about how they run the business and what they plan to do with any investment money. You effectively become your own investment analyst.
- New Tools – As investing locally becomes more and more popular, a wealth of tools to make it easier for you the investor have cropped up. With investment clubs, networks, and investment public offerings at your disposal, investing locally has never been easier.
Now take the time to look around your community. You probably already have some favorite restaurants or stores. You might already be friendly with some of the owners. By becoming a local investor, you open numerous opportunities and doors. Your favorite businesses benefit from your faith in their product or service. Helping others is one of the greatest feelings you’ll ever experience. Now you can do it on a grander scale by investing in local businesses. Happy helping!