Visit us on Facebook icon-twitter.png icon-linkedin.png icon-google.png       About Us     Contact Us     

Why invest locally?

Plain and simple: Most individuals would much rather support their community than send money to Wall Street or a foreign country. When you shop or eat out at locally owned businesses, you are not only supporting the business, but the creation of local jobs as well as supporting your local and state municipalities with needed tax revenues. When you buy local, more of your money stays in the community.

So what else can we do to help support our community?  INVEST your money into a local business.  As any standard investor knows, an investment requires due diligence, and an understanding of a personal level of risk tolerance.  If you've ever (or never) made a "wall street investment," weigh the following considerations:

Personal Value – If you eat or shop at a nationally known business, what is your level of service?  Imagine going to a national restaurant chain for dinner. Yes, they want your business, but do they really care who you are? What if you invest in a locally owned restaurant, becoming a local owner where the management and staff know that you are an investor - what difference might that make to you as a consumer and to the local business?

Think of the level of service you might receive if you invested in all types of local business opportunities.  If you have ever needed a local auto mechanic, plumber, electrician, computer technician or any other service provider, you know the level of fear and apprehension you have when trying to find the right person.  But what if you had the chance to be part of the local ownership of one of these businesses? Yes, as an investor you become just that - the owner of the local business.

You've created a positive attitude in the business just by being nearby. You invest local because you shop local and eat local. You are making your investment flourish because you actually have an effect on the outcome! In the end, investors who are also customers of a business have a direct impact on the business compared with a venture capitalist thousands of miles away.

The local economy – Investing in local businesses also creates real economic value for your community. Employees are paid with local money, and then those employees spend their wages at other local businesses, creating a cycle of local economic growth. Since roughly 80% of jobs come from small businesses in this country, local business employment is very important to most communities. Ultimately, investors who invest locally earn a return on investment and a return on community.

Investment in what and who you know – Quick…explain all the ways Bank of America makes money. What was that? Something about leveraging collateralized mortgages…Why are we putting hard earned money into companies that we don’t understand? Isn’t one of the first rules of investing something about investing in what you know? Now explain how your friend’s local consumer products company makes money. That’s better. The point is, if a business is right down the street, you can easily learn about what they’re doing and talk to the owner. Nearly all businesses, whether a software company or a draft brewery, have to start with local customers. This provides a much more comfortable and tangible investment than, say, a global bank with eight different lines of business that are nearly impossible for the average investor to understand. We’re not suggesting that you go and sell all of your public company shares, but you get our point - how about investing some of those dollars locally?

Fraud prevention – How often do we hear about all the fraud on Wall Street? How often have you heard an investor or individual say that putting money into the stock market is really no different than gambling at some level?  Now we hear about crowdfunding and the possibility of fraud that could arise over the internet. However, by keeping our investments local, it makes it much harder for a business owner to pull off any sort of scheme. Why?  Because you and the other investors are living, working and patronizing the local business and can see what is actually happening, holding the business accountable!

Consumers enjoy locally-sourced products and services. This connection with the community can be extended to investing in local businesses. Why not invest some of your assets in your favorite small business just down the street from where you live?

That’s why we created HiFMP Advisors, LLC.

Powered by liveSite Get your free site!