Small Investment Opportunities

Small Investment Opportunities Include a Wide Variety of Investments
 While most investors focus on large investment opportunities in the stock market and bonds, it is wise to also consider small investment opportunities that can be made in a variety of ways to make the most of investment capital and diversify an investment portfolio.  Small investment opportunities include a wide variety of investment opportunities that require a few hundred to a few thousand dollars of investment capital.

Small investment opportunities can include small investments in start up businesses, new business franchises, or small businesses looking to expand.  These can include small business ventures started by an investor on their own.  Small investment opportunities can also include investing small amounts of money in penny stocks and small cap stocks, or even very small purchases of mid to large cap stocks.

Specific Small Investment Opportunities

Thousands of entrepreneurs are constantly looking for small investors to provide them capital they need to start or expand a small business.  There are many websites and entrepreneurial business organizations that connect entrepreneurs with investors looking to for small investment opportunities.

While certainly not without risk, investing in small businesses that are hungry for capital is a good way to diversify an investment portfolio into small investment opportunities.  To protect an investor’s investment capital when investing in small investment opportunities it is a good idea to research the small business and the people requesting the loan thoroughly prior to investing.  It is also a good idea to keep the small business investments relatively small, by limiting each investment from several hundred to several thousand dollars.  Since many small businesses fail in the long run, loans to small businesses should be made on a very short term basis; either for just a few months to help the small businesses get started or for no longer than a couple years to help the small businesses grow in the short term.  To compensate for the risk associated with lending to newly formed small businesses, and because normal lending channels might not be available to those seeking a loan, interest rates should be set above the current commercial lending rates.

Small investment opportunities can also include a number of business ventures started by an investor looking to diversify their investment capital.  Many small business ventures that only require a few thousands dollars to get started can also be done as a side business that does not interfere with an investor’s regular job.  These small business ventures include, but are not limited to:  setting up and stocking vending machines; selling products over the Internet; selling products at flea markets and local fairs; selling products in one’s home via product parties; off-hours consulting concerning a service one can provide such as computer training, music lessons, or organizing people’s belongings; lawn care and other house maintenance services; and home cleaning services.

One of the often overlooked small investment opportunities is the investment opportunity afforded by stocks.  Just because an investor does not have tens of thousands of dollars to invest in the stock market, does not mean that they cannot or should not invest in stocks, from penny stocks to stocks selling for hundreds of dollars per share.  With the low commissions offered by online brokers, even one share of a stock in a fast growing company can be purchased without paying excessive commissions, and could be an excellent small investment.  The payoff from such small investments can be much more substantial than investing small amounts of money in a low yielding savings account or  Certificate of Deposit (CD).  For example, an investor that has $800 to invest, could by two shares of Apple Computer, Inc. (AAPL) for approximately $800.  With the high growth rate and projected price for AAPL shares in coming years, such a small investment could result in significant gains over the next few years; much larger gains than are possible by investing in savings accounts or CDs.  Of course, investing small amounts of money in the stock market carries the risk of loss of capital, so any such investments should be done carefully.

Those who wish to pursue small investment opportunities are encouraged to learn as much as possible about the many small investment opportunities and the various risks and rewards associated with small investment opportunities.

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