As a business owner in London you may see some steady profits come in as you become more established. Once you have some spare money in your business account then the wise move is to invest it. That will get it working harder for you with better returns than the rates your business bank can give.

But what do you need to know before you invest?

UK economy will play its part

Changes in the UK economy due to political or financial news will have a knock-on effect on any investments in companies or currency. From changes in the exchange rate to the rate of inflation, the financial markets are very sensitive to economic news which in turn may see your investments go up or down as a result.

How can you invest as a business owner?

If you are thinking of making some investments as a first-time London investor, then the below are worth consideration:

  • Stocks and shares – one of the most popular first-time investments for many London-based entrepreneurs is the stock market. Buying and selling shares is now uncomplicated with only a PC and a broadband connection needed to start trading online. It is a market that you need to study to ensure you make the right investments in the most profitable and promising companies, but you can realise impressive returns when you get it right.
  • Foreign exchange market – this is actually the biggest financial market in the world by trading volume, with over $5 trillion per day being traded. The market can be invested in quite easily via online brokers. On the FX market, you study the relevant charts to predict if the price of a currency pair will go up or down.
  • Peer to peer lending – the peer to peer lending sector is facilitated by well-known online companies such as Funding Circle. It allows you to invest your business profits into other companies in the UK and beyond with a view to getting a good return should it succeed as expected. This is easy to do and also makes you feel good as you are helping other business people to succeed.

Keeping up with the latest UK news is key  

However you decide to invest your money, it is important to always keep up with the latest UK economic news. That will allow you to see how the current UK economy may affect any investments you have made and to take prompt action if needed to prevent a loss. Hammerstone Markets Inc news feed is well worth signing up for so that you are always well informed about see what the UK economic news could mean for your investments.

Invest in the future

As an entrepreneur in London, you may be ready to enter into the investment sector for the first time. Any of the options we have looked at make great first-time investments, but you must keep an eye on the UK economy to see how they might be affected by any changes.