In the current economic climate, boasting profits for your business is a huge achievement. While things might be great right now, there may be some uncertainty and the chance of instability is always a risk. Rather than frittering profits away, invest them. Investment is a great way to secure your business’ future interests and safeguard against future profits. How can your business invest its profits? Take a look at these ten suggestions below.
1. Reinvest in your business
One of the best uses of your company’s profits is to reinvest in the business. Many businesses, especially in their infancy, will set up with minimal resources and equipment. Once your business starts turning a profit, you can think about improving your processes and infrastructure in addition to updating equipment and technology. Focus on improvements that will benefit your business and support its growth.
2. Your employees
Using your profits to invest in employees is a fantastic way to show that you are a committed employer. This helps to keep your turnover figures low. Employees appreciate benefits such as gym memberships, vouchers and other perks that make them feel more valued and show that you’re an employer that cares about their well-being. Meanwhile, investing in their training and development will benefit both you and them through enhancing their skills. There are plenty of unique ways to invest in your employees, so investing is definitely a good move forward for your business.
3. Invest in property
Property is a popular investment method for both individuals and businesses in areas that are experiencing growth in property prices and demand. There are different ways for businesses to invest in property- from purchasing their premises to scouting out new ventures. You could even consider investing abroad – a new condo launch overseas may seem like an unlikely investment for your business, but you don’t know where it could lead you. Take a look at the options available and consult an investment advisor for advice if you’re unsure of how to get started.
4. Your website
One of the biggest assets your business can have is your website. As the window to your business, your website is essential for connecting you with potential customers and clients and it will help people find information about you. Some of the reasons why you should invest in your website include making it more accessible to all technology users, such as those who shop from their mobile devices, as well as creating a good impression visibly. Your website should be something that you make continuing investment in to make sure it stays relevant and current.
Marketing is a worthy investment for your business. Before turning a profit, it’s likely that your marketing budget was small or non-existent. Now that you’ve got some cash to play with, you can boost your marketing efforts. There are simple and effective marketing strategies that can help you get your business name out there and hopefully generate further business.
Analyze your traffic and determine from where your leads come. If your marketing efforts are the biggest driver, then this is where your investment should go. Digital marketing is now one of the most effective tools available to business and is an area worthy of your attention. While there are free methods of implementing digital marketing strategies, putting funding into your efforts and hiring marketing professionals with skills and experience will help you yield the best results.
Once your business starts turning a profit, you might want to think about hiring more staff. While it’s a great sign that your business is growing, if you continue to grow with the same number of employees, you might find that you’re unable to cope with the demand, which could hinder further growth.
Examine business areas that are stretched and make plans to hire more employees to help you take on more business. You might also want to consider hiring staff in business areas you don’t already have, such as finance or marketing, to help even out your workload and to bring in people with specialized skills to grow your business.
On the other hand, there are some business areas you might want to take away from in-house operations and transfer them to an external agency. This may not have been possible while you were launching your business, but now that there is money coming in, you can afford to take these business functions off your plate and give them to outside organizations with more experience.
There are some key areas you should think about outsourcing such as technology services and payroll, which could help ease workloads and potentially save money. Business areas such as website management and graphic design are areas you should outsource initially, but could bring back in house as your demand and capacity increase.
8. Start saving
You might decide that a direct investment isn’t the best way forward for your business, if you’re concerned that things won’t always be as profitable as they are now. Putting profits into savings is a good idea for small businesses. This is also a smart move for those who are self-employed, as this savings could provide a vital cushion if business were to decrease or faced with some kind of crisis. You can always split your profits both savings and investments to give your business the best of both worlds. Look for savings accounts that give you the best rates over the short term, allowing you to benefit from the interest to put towards further investments or rewarding your employees with bonuses, etc.
If you foresee your profits continuing to increase, you might want to consider expanding. Whether this means opening another location, taking your business online or expanding internationally – there’ll be many options available to businesses looking to expand. You may want to consider offering different products and services to strengthen your business and develop in line with current trends. Expansion will require strategic planning before you go ahead, so make sure that your plans are in line with how you see your business’ future.
10. Give back
It’s important for businesses to give back and help their communities. While it may not seem like a significant investment for your business, giving back can do a lot to boost employee morale while also creating good perceptions of your business and provide you with good PR opportunities. Giving back can take many forms from hosting or sponsoring charity events, working with local community projects, or educating others through offering seminars, training and workshops. This can help share knowledge and boost skills within others. Giving back can inform an important part of your annual work program and raise your status as a respected and trustworthy organization.
However you choose to invest your business’ profits, there are many options that can benefit your business, your employees, and others. Take the time to assess the various options available and decide on what makes the most sense for you.
You can always combine different types of investments to help safeguard your future to avoid putting all of your eggs in one basket. Investing while things are good can help to protect your business should things go bad. It’s wise to put an investment plan in place to help protect your business’ future.