It's riskier that I must admit but if you choose to start a farming business for example even though you might initially lose some money eventually you'll be making more than your investments would earn you. Doing some research I learned that a growing expensive vegetables on 1 acre farm could get earn you about $80,000 a year. Thoughts?
I have a neighbor who has started an organic vegetable farming business and he's doing great so far. He was able to buy a new truck because of his organic farm since the price of these kinds of vegetables are more expensive than the regular ones. He had to spend a lot on the lighting and materials of his garden but he was able to reap the fruits of his labor once he began harvesting his crops. I think farming is quiet a lucrative business as long as one exerts a whole lot of effort.
My take on this is the passion. If you love doing the business then the profit is just secondary. Like in the example of a farming business, you already have earned a profit when you enjoy working in your farm. The mere sight of the crops can give you a sense of achievement. Now with the profitability, it is good to arm yourself with time-tested methods before embarking on the business. Learn from the veterans.
Well that is not a bad idea but I do not think starting a business is better than all other investments. It's a good investment, but first of all you have to consider where you intend to get the funds. Are you going to take out a loan or have you saved an amount which you could use as capital? As long as it's something you have knowledge and experience on, that business will work. If you start a business in an industry you're alien to, the chances of you getting the right ROI would be 50-50.
I guess that would depend on the type of business you are starting and what the demand for it are. You would not want to start a business that is not in high demand as you would not see any profits. With the example of farming, it is a very risky business since you have to depend a lot on weather and the condition of the soil. I am sure that are ways to be very lucrative in this type of business, but there are large risks involved since the conditions of your crop relies heavily on the stability of the weather. But if you have a passion and a drive to make your business successful, then it can be emotionally and financially rewarding.
There are many types of small business that you could do which could bring a much greater return than the regular stocks and bonds investment. I agree that farming could be a viable option to invest in. there are a number of risks involved with farming activities, however, there are also risks involved with all the other forms of investments. The thing to do when you are you plan to go into farming is to carefully check out the factors for ensuring the feasibility of the project: The soil content suitability The demand for the produce Weather conditions Pest management Effective marketing programme Farming activity can be very lucrative, bringing huge returns on investment if it's successful, however if it fails it can amount to huge losses, but if you don't take the risk you won't be able to be successful.
There is a thin line between a business and an investment because all businesses are essentially investments. But that said and done, there are some investments which are better than some businesses and vice versa. At the end of the day, investments that make your money work for you are the best.
