Today’s business culture is centered on entrepreneurship. Young people who undertake know how to take risks, not everyone dares to leave their comfort zone to pursue a goal as big as their own business.
Thinking ahead is a common characteristic among successful entrepreneurs, their efforts are focused on maturing income, ensuring long-term financial stability.
Today it is already common to hear of someone who quit his job to start his own business, especially with the economic effects that the Covid-19 pandemic has caused worldwide.
A large number of people who lost their jobs, or were forced to work from home and migrate to digital media, have seen this as a new opportunity to start a business.
Even in times of crisis, there are safe investments that allow you to undertake and secure assets, this is the case of real estate.
In this article we will talk about how you can start your own business by buying land.
Why is it the best time to undertake?
The advancement of technology has allowed office costs to be reduced, and cheaper services to be outsourced using methods such as outsourcing. This allows entrepreneurs to allocate a percentage of their income to mature their money in investments in Blue World City
Global Entrepreneurship Monitor (GEM) is a prestigious study worldwide, which measures the levels of entrepreneurship in more than 100 countries since 1999. Through its methodology, it allows identifying the factors that increase the levels of entrepreneurship.
The GEM is taken as the basis for developing strategies that allow an environment for the optimal development of ventures. The NECI (National Entrepreneurship Context Index) is a new indicator that has just been incorporated to measure the levels of business financing in each country.
Mexico has stood out in the context of entrepreneurship in recent years, thanks to factors such as the ease of obtaining business and SME financing, as well as programs that the government has developed for this purpose.
That is why, at present, Mexico offers an environment that favors the start of new businesses —especially in the cities of the Mexican southeast—, and an excellent opportunity to start building your own heritage.
What do you need to start entrepreneurship?
Entrepreneurship is an important step towards financial independence. Regardless of the circumstances that drive you to start a venture, the first thing will always be to inform yourself about the subject and develop a business plan.
If you already have a business idea to develop, it is necessary to start a planning process, we mention some important points to briefly consider:
- Determine the product or service you will offer: There are many options to trade, both in products and services. Think about the market demand and whether it is something new or essential.
- Calculate the return on investment to confirm that the investment is feasible: Before investing in any project, it is important to perform a calculation of the Return on Investment, in this way you will have greater confidence to carry out the operation.
- Good record of expenses to prepare a budget: A mistake that first-time entrepreneurs make is not taking into account the expenses that are required after the opening of the business, such as distribution – in the case of product management – and advertising services. The investment budget must include all expenses, from the purchase or rental of land or premises, to remodeling and payment of salaries in case of hiring personnel.
- Finding the ideal land or premises: The location plays a fundamental role in the success of a business, finding a land or premises that meets the necessary requirements should be a priority. Many decide to buy by price without considering this, which can result in the business not meeting the proposed expectations.
- Have a marketing and social media plan: We are in an era where if you are not on the internet, you practically do not exist. Every company, no matter how small, has profiles on the main social networks, as well as an exclusive contact email for the business. For this reason, it is convenient to start working on a marketing proposal as the project progresses, this will help define the image you want to project on your potential clients, in addition, it is also a way to measure the interest they have in your service or product.
To help you develop a more complete business plan, we have prepared a guide to starting a business, where we talk in more detail about the steps to follow to start your venture.
Undertaking in real estate, a safe investment
As we have mentioned, the location of your business is vital to guarantee optimal performance, now, why is buying land a good option to undertake?
The main reason is that real estate is one of the safest investments you can make, therefore, not only do you get a piece of land for your business, but you also start to build an equity for the future.
Acquiring land has greater advantages than leasing it because the money you invest in it ends up being for your benefit, unlike an income that does not provide you with future benefits; this way you are paying for something that will be yours.
An additional benefit is that if for some reason your venture does not turn out as you expect, all is not lost because real estate increases in value over time, so you can put it up for sale making a profit or obtain additional income by leasing it.
The sale of land is simple, especially if it is flat land and in an area of high capital gain.
Even if you still don’t have an idea of what business to start, buying a piece of land may be the solution. There are several business ideas to do with land with which you can earn income without investing too much.
How to choose the ideal land for your business?
There are several business models and depending on the needs of yours it will be the type of land you will need.
For example, if you want to venture into the real estate or construction industry, it would be advisable to buy a macro lot that you can subdivide, this is ideal for large-scale projects.
If you are thinking of a smaller business, you can choose an investment lot for commercial use, for this you must confirm the type of land use of the land, because acquiring one that has residential use will not serve this purpose.
Although rustic land is usually cheaper, it will not be viable if you want to undertake soon, due to the amount of time and diligence it takes to carry out the procedures to assign it to commercial use.
In addition to the location, the square meters and the basic urbanization services, it is important that your land is private property and not communal, because the latter belong to the state and are generally agricultural land that cannot be sold.
When making the purchase, make sure that your property is registered in the Public Property Registry to guarantee that the deed was carried out in accordance with the law.
If you want to know more about this topic, we invite you to read our articles: Key points to invest in commercial land and benefits of buying a land in a commercial area.
Investment tips for entrepreneurs
One of the most valuable assets of the entrepreneurial society is time, so do not be afraid to undertake at any time in your life, since there are different types of investments depending on your age.
When making the decision to put the money earned to work, it is common to start by asking those who have experience investing.
Although this is valid, we recommend you contact an investment specialist who can guide you based on the business model you want to undertake. Many choose to grow their capital before starting a fit business.
There are generally three types of investors:
- Conservative: He does not like to risk his money; he prefers a low but safe return. Short or medium-term investment funds are ideal for this profile.
- Moderate: The fear of risking is still high, but focuses its search on achieving the best returns. The real estate industry or stock exchange indices that offer a balance between performance and security can work for this profile.
- Risky: This type of investor usually already has financial stability, which allows him to risk more in order to obtain higher returns.
After analyzing what type of investment, you want to start with, you have to look at the available options and make an analysis of the objectives and the possibilities.
Low, medium and long-term risk investments:
1. Fixed income investments
They are investment instruments with low risk and a return that is known from the beginning. You can buy them in financial institutions such as banks.
The person knows exactly how much money the invested capital will generate in the established time, since it is previously stipulated by an interest rate. The profit margin is low.
2. Real Estate
In general, these are goods that will never lose their value, on the contrary. Doing good research is important and it also means choosing the best area to buy it, taking into account the characteristics and context of its location.
The Mexican southeast presents unique opportunities in low-risk early investment projects. The numbers are promising, and the willingness to mature income longer is rewarded with a high return on investment.
It is also essential to analyze the level of capital gains and put everything in a balance to make the best decision.
At present you can find many options to buy land even on the internet, this will be viable as long as you visit the property physically and confirm the reputation of the real estate company.
Higher risk investments, medium and long term:
1. Equity investments
These are characterized by depending on the fluctuation of the market to define their value. For example, the shares where the investor earns from the dividends of a company from which he buys assets.
This type of investment has the advantage of liquidity since the money can be available at any time.
This method of investing is risky because you have no control over the market response; novice investors should develop a financial literacy before risking their income.
2. Investments in digital currencies
Despite the fact that opinions are divided regarding the risk and ethics of virtual currencies such as Bitcoin, investors more familiar with the technology behind the currency have been lucky since there is no central bank or financial institution that regulates its operation.
In the case of Bitcoin, it represents a decentralized currency, open to the public. This makes it susceptible to privacy violations, which is why it is considered a high-risk investment.
Start with a piece of land and secure your future
Starting your own business is one way to prepare for your retirement years to enjoy a relaxed lifestyle. Acquiring an investment lot for your company is the best way to use your retirement savings.
At BMF Inversions we have a group of specialists who can help all types of investors and entrepreneurs to take advantage of the opportunity to carry out profitable real estate operations in the Yucatan Peninsula.
We have 25 years of real estate success and we guarantee the success of investment through market studies that guarantee the profitability of our projects.