The United States has one of the highest numbers of small businesses, with over 33.3 million operating in 2024, as revealed by the US Small Business Administration. This number reflects the domination of entrepreneurship in the country, and it comes as no surprise because small businesses in the country have grown significantly over the years, and more than 70% of them are expected to experience higher revenues over the next year, according to data from the Department of the Treasury. These developments are not only attributed to the profits from products and services. Many business owners and solo entrepreneurs incorporate other passive earning opportunities like financial investments to grow their revenue, and the essence of this article is to show you how.
Passive Earning for Solo Entrepreneurs
The essence of every business is stability. That is, building a stream of income that can withstand the test of time, volatility, and market irregularities. Sometimes, running the business alone isn’t the way to achieve this result. Every business has its downtime, and as a professional, it’s essential to have a strategy to guide against such. The financial investment market is one of the significant opportunities most entrepreneurs look to. It offers different assets and instruments with varying risk levels. You could choose to trade cryptocurrencies, currencies, stocks, ETFs, and many others, depending on risk tolerance, amongst other factors. The availability of online trading software has made this relatively easy.
While large-scale companies might look to institutional trading firms, a solo entrepreneur can trade the markets as a retailer using platforms like TradingView. The idea of retail trading is that it can be done by oneself. You can trade different securities, monitor the market, and learn strategies for multiplying your revenues.
Trading Financial Markets as a Solo Entrepreneur
The options are limitless, but before choosing a plan, define your financial goals. Some of these investments are short-term, while others are medium- and long-term plans. For instance, investment in leading company stocks is an example of long-term commitments on how much the business can grow and yield returns over the years. Another factor to consider is risk tolerance. Some investments like bonds and high-yield savings accounts are risky and appropriate if you have a low appetite for risk-taking. Let’s look at some options to trade and the classes each one falls into.
Foreign Exchange
The forex market is first on the list because it is one of the most reliable sectors, with daily exchange volumes surpassing $6 trillion. It is heavily regulated and controlled by authorities to safeguard users’ assets. In terms of market volatility, it is a volatile market, but the level varies for varying currencies. Some prominent currencies like USD, GBP, and EUR are relatively less volatile than other minor and exotic pairs. Most forex trades are short-term investments because many traders constantly look to time market swings in hopes of quick gains. Hence, it could be an excellent alternative if your goals are the same. Conversely, you could hold certain positions for weeks, months, and years if you plan to go long-term.
Cryptocurrencies
Cryptocurrencies are popular as another quick investment opportunity because they can give fast returns. However, they have one of the highest levels of volatility. Although Bitcoin had some incredible gains last year, the coin has tanked significantly in the previous few days, dragging other crypto tokens further down.
The broader market has lost over $100 in the past weeks, and BTC is more than 17% down in the past month. Crypto market assets offer incredible gains, and some of this possibility has been displayed over time. However, there is no denying that it is also one of the most unstable financial markets, which is one thing to note when creating your plan.
Stocks & Options Trading
Stock market investments are highly lucrative and can yield excellent results at minimal risk. It is simply about buying partial ownership of a company and getting returns based on how much it generates.
On the other hand, options are very similar to stocks, but rather than owning them, traders hold the contract. This contract gives the right to buy or sell for profit. The risks for stock trading are quite moderate but can also be higher depending on the stock’s volatility. The goal should be to focus on the best growth stocks, such as tech (AAPL, MSFT), AI & Cloud Computing (GOOGL, PLTR), and the electric vehicles market.
Futures and Commodities Trading
Futures and commodities trading include buying and selling contracts for raw materials like agricultural products, gold, natural gas, and crude oil. The most profitable of this class are those with the highest liquidity and volatility, like crude oil and natural gas. Gold is another popular commodity that is a promising asset. It is particularly great for hedging against inflation and also for diversifying for better gains.
Building Businesses Through Asset Diversification
Trading financial assets while building a brand or business is a great way to diversify and earn passively. Consider diverting some company funds to these investments to grow your revenue. However, it is essential to note that these sectors carry their respective risks — money can be lost while trying to multiply it. Ensure that your asset of choice matches your risk appetite.
