If the objective is to diversify your savings and assets, investing in a French or international SME can be very profitable in the long term as we have seen in the business news (in spanish: noticias negocios). But how do you invest in a business? There are several means available to you, including the appearance of crowdfunding.
How to invest in a company or a startup?
Invest in the stock market
If you are wondering how to invest directly in a company, choosing the stock market is a solution, provided you understand and accept the inherent volatility of the stock market! In terms of performance, it is difficult to make this type of capital investment more attractive, if one carefully chooses the sectors and companies to follow.
But how do you invest in a company in the stock market? Far from being reserved for an elite of professionals, this practice can be carried out in several ways:
The ADP values (Savings in Action Plan)
The PEA-SME Securities (Plan d'Epargne en Action - Small and Medium Enterprises)
Ordinary securities accounts,
Online brokers ...
The approach also varies according to the profile of your investor: beginners will be able to turn to rider-managed life insurance and trackers to delegate the management of their assets to a professional and make sure they are betting on the right horses. For investors who have some knowledge of how the stock market works, opening an ADP will prove to be an excellent solution for stock selection (direct stocks) or investing in trackers (index funds).
Invest your money in a business
How to invest in a non-listed company? Some investors are turning to mutual funds to diversify their portfolio of assets and get a good start in the stock market. The goal? Investors pool their investment capital in a fund, which will manage, buy and sell different securities in the stock market. You then become a security holder as soon as you participate in the fund by investing cash in it.
The main advantage of FCPs will be the delegation of asset management to professionals, which allows you to avoid beginner's mistakes. This advantage also becomes a disadvantage as management fees can be high in certain cases.
Similarly, the fund units you own can be sold at any time, but this will require you to give up all control over your invested savings. Discover below the different forms that a FCP can take:
SICAVs (open-ended investment companies): the investors are the shareholders of the fund, whereas traditional FCPs place them as co-owners of the fund. Therefore, investors in SICAVs may have the right to vote at general meetings.
FCPR (mutual funds for risk investment): they refer to the so-called unlisted assets, with a rather substantial rate of return on investment (ROI) . but with higher risks of capital loss. The Mutual Funds for Investment in Innovation (FCPI) and the Proximity Investment Funds (FIP) are affiliated to the FCPR.
FCPE (Fonds Communs de Placements d'Entreprise): for the employees of a company, the employer can create collective savings so that they can invest.
Invest in crowdfunding
How to invest in a small or new business? How to invest in a company without a contribution? How to invest with a minimum participation and aspire to a capital increase? Several questions, but only one answer: crowdfunding or crowdfunding.
New to the financial markets, crowdfunding allows you to acquire shares of a company or help you finance its development to earn interest at the time of repayment. Again, there are several ways to invest like this:
Crowdfunding as a pure donation: generally used for humanitarian or associative projects in which a company asks Internet users for a donation without any compensation
Crowdfunding as a donation for a reward: projects can be funded without financial compensation (book publication, plays, etc.), but a reward is issued (a T-shirt, the book in question, etc.)
Crowdlending: investors lend a sum of money to a company to help it finance its project. The latter reimburses them with an interest rate fixed in advance.
Crowdfunding of royalties: a company collects funds in exchange for royalties on its turnover. Investors benefit from a faster ROI.
Crowdequity: investors buy shares in a company to become shareholders.
To invest in a business through crowdfunding, there are many online platforms: KissKissBankBank, Ulule, Wiseed, etc. Remember to ask about the past before you: the ORIAS website especially allows you to verify its legality.
How to invest in a business: steps and advice
The golden rules to follow
You know the answers to the question of how to invest your money in a business, but with respect to "how much", it will first be necessary to define your investment goals to avoid any partial or total loss of the capital you are. Ready to invest!
Why do you want to invest in general? Are you looking for a long or short term investment? What is your risk appetite? Are you looking to benefit from a reduction in income tax? The answers to all these questions should be very clear in your mind to start with confidence.
Regarding the companies themselves at the time of investing in a business you should check the business news, it will be a point of honor to understand their main business. The company's activity, its needs, its leaders, its objectives, etc. Warren Buffet says it himself: don't invest in what you don't understand!
At the same time, if you want to invest, consider diversifying your investments and your assets: don't put your eggs in the same basket, this is the adage of any good investor! The goal is to minimize possible capital losses, placing all your savings in one asset is very dangerous and counterproductive.
Finally, remember to keep an eye on the companies you have invested in. Their evolution can be an excellent way to invest personally, and not only financially.
Investing in a business is not an easy task and the best thing to do is to watch business news (noticias sobre negocios) to always keep us informed since it is a very changing market.