Investing in private business

Investing into a private business is investing money or time into a business or enterprise that is privately owned.

This can include operating your own business, operating a business with partners, or investing in a business not listed on the stock exchange.

A private business could include a McDonalds franchise or a fruit shop.

This can be a high risk investment as often its success is dependent on key individuals' involvement as well as the nature of the business and market conditions.

However, it can provide rewarding returns especially as investment tends to occur in the early stages in the development of a business and if and when the business enters a new phase of expansion, large profits can result.

However, there is the risk that money put into the business may be lost altogether.