5 Smart strategies to grow your business's wealth in uncertain times
In an economic climate where inflation and potential tax reforms loom large, it's crucial for businesses to build wealth efficiently. Although savings deposits at banks in Belgium have slightly decreased for the first time in years, the total remains astronomically high at nearly EUR 300 billion. With interest rates on savings continuing to be low, businesses need to seek alternatives to traditional savings accounts more than ever. In this article, our experts present 5 smart strategies to grow your business's wealth in a profitable and secure manner.
Strategy 1: Make the necessary administrative efforts
One key aspect to consider when investing within a company is the accounting complexity. Unlike personal investments, all investments within a company must be accurately recorded. This means that even a diversified portfolio of individual stocks and bonds can require significant administrative efforts.
Strategy 2: Determine the company's risk profile
When setting portfolio goals for a company, it's important to consider your risk profile. A popular choice for corporate investing is DBI-bevek investment funds, as these qualify for reduced tax rates on capital gains and dividends. However, be aware that a DBI-bevek carries high equity risk and is not suitable for all investors. Therefore, it's best to determine the company's risk profile in advance, before making investment decisions.
Strategy 3: Opt for active investing
Investing in financial assets, such as corporate bonds and stocks, is a logical investment strategy. By investing actively, you as a business owner can generate returns on your wealth and contribute to the overall economic growth.
Strategy 4: Withdraw funds from your company
When you need cash from your company for various reasons, there are several ways to do so. You might opt for salary or dividend payouts, the creation of a liquidation reserve, a reduction in capital, or a VVPRBis scheme.
Strategy 5: Choose a sustainable investment strategy
Do you want to build wealth within your business? Then a solid understanding of tax laws and processes is essential. Especially in times like these, when the government may plan tax reform, this is crucial. However, tax regulations should not be the sole driver of investment decisions. It's much more sustainable to develop an investment strategy that aligns with the company's financial goals and risk profile.
