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Why how you use your profits is crucial when your business is in a growth phase

When you are putting a lot of focus on marketing or even growth hacking your business, you can see a period of fast expansion as the early adopters of your product or service find you. However, this initial growth is very difficult to use as a predictor of future growth and profits, as most businesses hit a plateau after that early adoption phase before other, future growth periods.
Why how you use your profits is crucial when your business is in a growth phase
What this means is that the profits you see coming in during this phase need to be used wisely, because while things may be going very well and everything is working according to plan, this doesn't tell you as much about the future as you might think.

Secondary income sources

Some of the profits from your initial growth period will probably need to be invested back into the business, but this isn't the only way to give yourself some more stability with this money. Rather than spending big, or prematurely investing in things your business doesn't need yet, you may give yourself better security by using these profits to diversify your own income sources. As well as your primary business, you could do well to start some form of trading, such as stocks, forex or contracts for difference on commodities. Commodities can be a very good choice that is often overlooked by new investors, and can be quite easy to get started with.

How does commodities trading work?

Commodities themselves are resources, effectively, and their value changes all the time in response to all kinds of global factors. The cost of oil, corn, sugar, wheat and all kinds of other things humans buy, sell and use fluctuates, and this is something you can use as an investor to stand a chance of growing your money – much like with stocks or currencies. There are various ways of being involved with commodities trading however one of the simplest to understand and do is known as contracts for difference, or 'CFD' trading.

What is CFD trading?

CFD trading means that rather than actually buying and selling the commodities themselves, you buy a kind of bet on how their value will change. You can say, for example, that the price of corn will go up, or cocoa will go down. If you are right, you gain money. This sounds simple, and it is – meaning you can begin using your profits in a way that can help you make more money by investing wisely without having to learn about the stock market! Just like with stocks or forex, you can of course also lose money, however it is much easier to understand and to control how much you would effectively lose in the worst case scenario.

If you are looking for a way to get a possible secondary income and make good use of your first serious profits, then any form of investing and trading is an interesting option, but why not look into commodities?

26 May 2016 17:32

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About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as Tech.co, Semrush.com, Tweakyourbiz.com, Socialnomics.net. Boris is the founder of MonetaryLibrary.com and cryptoext.com.




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