A friend of mine recently came into quite a bit of money and asked for my investing advice, specially about wholesale sources.
She was intent on investing the entire $250,000 at once, but I had a better plan for her.
In my experience when beginning investors find themselves with a large amount of money to invest, investing 20 thousand at a time yields the best results.
She was very interested in starting her own business selling purses online.
We worked together and found several wholesale sources that offered exactly what she was looking for.
She choose 20 thousand dollars worth of merchandise and began listing them online.
Within days she'd received several orders and was feeling very optimistic.
After a few weeks though she realized that one of the purse designs was not selling well.
Because she'd bought several other designs and was only investing 20 thousand at a time, she was able to sell them for just above what she paid for them.
While she didn't make any profit, she'd only bought a few of that design and had other hot sellers to make up for her mistake.
This is a perfect example of how investing 20 thousand at a time is a great idea.
You've got enough invested that you can make huge profits, but not enough that making one mistake will destroy your entire business.
Once you see your returns, you simply make a point to learn from your mistakes and keep investing.
The most important principle is to keep your money moving.