How to invest Business Cash ?

One of the dilemmas facing businessmen all over the world is , how do I make the best use of the cash being generated by my business ? Should I reinvest it in the business or is there any other use of the same where I can get better returns?

So, to answer this question, we must first analyse following ?
1. What is the return expected from your business? Is it less than what you would get from investing in Bank FD or Mutual funds?
2. How much risk appetite you have with this surplus cash ? If your risk appetite is less then you may invest the money in FD with banks. If you can take little bit of volatility , then invest in Mutual funds. If you have stomach for equity markets, then you would be better off investing in direct equities and let the market work its magic on your surplus cash.
3. Whether you would need money in near future to run your business? If you will need this cash in near future , then simply go for FDs which can be liquidated anytime, else look for suitable investment tools basis your time horizon and risk appetite.

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