I want to share with you today what I’m currently working on which is been working with a group of incredible Australian builders.
I’ve always wanted to help all these trade industries to learn how to invest their surplus capital – when you’re running your own business, things can feel a little unstable with business and personal expenses to keep in mind, and sometimes, you’re not quite sure when the next job will be.
It can take some time to get there, but once you’re at the stage where you’re making the cash flow and the net profit that you want – what do you actually do with the surplus cash?
Investing Successfully To Minimise Business Risk
Australian builders are incredibly hard-working and humble.
The physical labour involved as a builder or tradie can be intense, and is really something that is highly dependent on your physical ability.
Without you there to make things happen, there essentially is no business, and thus no income.
So it makes sense to take precautions in case things affect your ability to generate your income. For example:
- Physical injuries that happen onsite or offsite
- You get sick / old and are no longer able to do labour-intensive tasks
- Clients and leads dry up due to a recession or market downturn
One thing you can do is to take good care of the money that you do earn and use it to increase your overall wealth as you earn it. In other words, investing successfully.
The question is – what do you actually do with the surplus money you have after subtracting business and personal expenses from your income?
Can You Teach An Old Dog New Tricks?
Many Australian builders I come across have never been exposed to the stock market before.
They’re very familiar with their craft, but when it comes to investing in the stock market, they just don’t know what to do with it.
Tell me if you’ve experienced this before – the financial world feels murky. It feels like a secret, members-only club that only people with intimate industry knowledge of the finance world can make a real profit.
And so you hand off your money to someone else to take care of – whether that’s a broker or the bank generating minimal amounts of interest.
That’s how Frank Bilotta, an Australian builder based in Melbourne felt too.
But after exposing him to the stock market and showing him how to physically invest his hard-earned money safely, comfortably as well as financially being able to create that wealth that he wanted, he now manages his own superfund outside his main building business.
➜ Relevant Link: If you want to learn more about Frank Bilotta’s story, click here.
And same for you as well, you know if you’re running a business make sure that you do allocate some capital outside the business to make sure that you know whatever happens to your business, you’re always okay for yourself as well as your family financially.