Once your business starts to earn profits, you can invest that money back into the business to make it even more profitable. You have plenty of options. Take some time to think about what your business needs most. Many companies decide to invest in one of the following four ways.
Spend More on Online Marketing
If people don’t know about your business, then they can’t spend their money on your goods and services. By investing your profits in online marketing, you can expand your company’s reach to attract more customers.
Don’t think of this as simply advertising. You want to market your company as a comprehensive brand that can help people solve their problems. That means you need a cross-platform approach that includes social media, a blog, and an online marketplace.
An initial investment will let you hire a professional who can set up your accounts. That’s an important part of the process, but it’s not the end. Remember that you will need to update content frequently. That can take money. You might also need to hire someone to run your social media accounts. That also takes money.
Make online brand marketing a steady part of your business plan. By pouring some of your profits into it, you should find that you can build a positive reputation and attract more customers.
Open a New Location
If most of your customers buy directly from your brick-and-mortar store, then you should consider using your profits to open a new location. That should make it easier for potential customers to shop at your store.
Opening a new location obviously takes money. It also takes a lot of time. When scouting locations, ask yourself whether:
- the neighborhood matches your business’s personality
- the space is suitably sized for your store
- you can get the space at an affordable price
- opening a store there will reach an untapped market
- it’s easy for customers to find
You don’t want to make this decision haphazardly. If your new location doesn’t make enough money to sustain itself and contribute profits to the company, then you’ll lose a big chunk of your investment.
Get More Involved in Your Community
Now that your business generates a profit, you can use that money to participate in community events and services. Donating your time, products, and money to community does much more than earn your business some karma points. It will also help you stand out from your competitors.
This is some of the best advertising you can buy. Some research shows that American consumers are more likely to buy products connected to partnerships between non-profit and for-profit organizations.
You can get more involved by:
- partnering with non-profit organizations
- sponsoring events such as races, panel discussions, and festivals
- contributing to organizations that support various arts
- hosting events at your store, office, or warehouse
- encouraging employees to volunteer (and potentially paying them to do so)
If you get more involved in your community, then the community will want to support your business. Eventually, your business will grow so much that you can go public. Then people can use an investment app to purchase stock in your company.
When done properly, community involvement can lead to continued growth that benefits everyone.
Improve Your Employee Training Program
Whether your company has 10 employees or 10,000 employees, you need a good training program that teaches them how to serve the greater good and gives them a reason to stay interested in their work.
Training could mean that you hire a human resources professional to develop a new program. It could also mean hiring a consulting firm to develop a training program for you. Either way, it costs money.
The money that you invest in training, though, should help you become more competitive. It should help you attract more customers who put a premium on reliable services. This and paying for higher education should also help you retain invaluable employees, thus helping you avoid the expense of replacing staff members.
Now that you know more about investing company profits back in your business, which option will you choose? What factors influence your decision most?
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All excellent ways to re-invest in your business. There are, of course, others. Expanding your product line – which requires, in most cases, purchasing new inventory – is the idea that comes to my mind right off. If you already have the sales infrastructure set up, why not see if new products will add more to your profit than the ones you already have?
Brad @ Monster Piggy Bank recently posted..Getting help when starting a business
Those are good points to consider for a business owner. I agree to those strategies, rather than taking the money to buy luxury goods better reinvest it in your own business. It a good practice of delayed gratification double up. The money earned later on would be huge and can easily finance your retirement options later. But what if you chose again to reinvest in your business. When is the good time to stop reinvesting back?
Jeff @Project Ikonz recently posted..Ebay side hustle is awesome and crap at the same time