Investing in the Future: Why Successful Entrepreneurs Are Backing Others

There may be times when focusing on your own company isn’t enough to succeed in the world. While it can be good to pay attention to your own workings, sometimes it can also be rather beneficial to invest in the creation of brand new ventures. Although this can help you to make some great returns, it can also go a long way towards benefiting society and bringing some otherwise underfunded ideas onto the market.

Here are just a few ways that backing others can benefit your own business:


Firstly, without investment, companies may not be given the opportunity to grow. David Spector of ThirdLove may understand that more than anyone. Even with their success over the years, continued investment can allow them to branch out even more. While selling lingerie can be rather important, additional funds have allowed them to consider the needs of the modern woman. This includes a variety of not only body types but also breast types. In addition to this, it is that investment that could have helped them to create a Fit Finder, which uses a customer’s smartphone camera to help figure out their size and potential products. Without the backing, they may still have some products available, but not enough to really be able to positively impact and change the current market.


Investing in other companies can also be a great way of extending their lifespan. At times, older companies may not have the means to expand further or sell newer items. By investing in their continued development, investors are able to keep known brands alive that much longer, while bringing their products into line with the times. Being a part of it, or owning it completely, can also help to keep competition at bay. In doing so, this can not only help the company receiving the funds but, should it prove to be worthwhile, also generate more guaranteed income for the investor themselves.

Reputation and Recruitment

Not all investment turns a profit. At times a company may invest in a charity or good cause, knowing that there will be no return. There can, however, be a number of other benefits in doing so.

Primarily, this can help to improve the reputation of the company, as they may then be perceived as kinder and more thoughtful of those who have less. Approximately 70% of millennial customers may choose a product if it is associated with a brand that is known to give to good causes.

Secondly, this might also be a great way to improve your own recruitment and retention. Potential employees may look more favorably upon a brand that is willing to give to others. Aiding disadvantaged groups or individuals can also reflect on your company’s morals, which can give employees a sense of pride in working for you. Recruitment will be boosted even more if you invest some of your money in your employees’ development too.

The Bottom Line

Successful entrepreneurs may not only think about the welfare of their own companies. By investing in a number of areas, they may be able to turn more profits and expand their own venture. On top of this, you may also receive more investments yourself, or even be able to do some good in the world.

If you’re financially able, it can really pay off to invest in others, but you shouldn’t stretch yourself too thin if you’re only just starting out. Investing in other businesses without first securing your own company’s future can be disastrous, so make sure you take a good look at your budget before taking action.

Posted by Dragan Sutevski

Dragan Sutevski is a founder and CEO of Sutevski Consulting, creating business excellence through innovative thinking. Get more from Dragan on Twitter. Contact Dragan