Spending money to make money isn’t a new concept; it’s a fundamental part of business ownership. Knowing where to reinvest profit for the best return is the tricky part, and largely depends on your specific business needs and goals. Investopedia defines investing as the act of allocating resources, usually money, with the expectation of generating an income or profit. As a small business owner or entrepreneur, deciding what to invest in and setting the expectation or your return on the investment is largely trial-and-error, but these three ways to invest in your business are a great place to start.
1. Invest in Your Employees
Your business is only as strong as your team. You want a staff you can trust to represent your business well, even in your absence. Moreover, your team should include people who are equally dedicated to the growth and success of your company. No single person can fill every role, so focusing on employees whose strengths complement each other and your own is key to a strong foundation.
Investing in your team can take a variety of forms. For existing employees, it can mean more recognition and feedback. Fostering a workplace that encourages innovation and cooperation helps your team feel heard and valued, increasing job satisfaction and brand loyalty. Offering competitive wages, comprehensive benefits packages, and nurturing a positive company culture also draws in great candidates for positions that still need to be filled.
Another way to help your team grow with you is to offer support for career and education advancement. Investing in proper training for new industry standards and marketable skills not only strengthens your company but helps to enrich the lives of your employees. Covering the costs for certifications and continuing education courses can help keep your business in compliance and ahead of competitors.
2. Invest in Brand Awareness
One of the most common challenges for small businesses is finding ways to increase brand awareness to solidify your place in your industry. In this modern digital age, the easiest and fastest way to do so is through digital marketing. Beyond basic measures like SEO keyword targeting, free social media and directory listings, and other means of driving organic online traffic, investing in paid marketing efforts can give you the boost you need.
Sponsored posts, ads, and other forms of paid media can help put your products and services in front of new, fresh eyes and draw in a new audience. Targeted paid search reaches your specific demographics both locally and on a broader scale. Even creating partnerships with online influencers and creating sponsored content is a growing means of increasing brand awareness. These efforts build authority within your space and keep your company at the forefront of potential customer's minds.
3. Invest in Asset Protection
For businesses of any size, ensuring your interests are protected on all fronts is important. Just as you would install a security system to protect your inventory and storefront, taking measures to safeguard your non-physical interests is equally necessary. Financial and legal protections are particularly crucial, especially for startups and small businesses.
However, knowing where to start in protecting your business can be confusing. Here are a few places to start:
Patents and Copyright: if your business has developed something innovative for your industry, protecting your designs and intellectual property is vital. Whether you’ve reinvented the wheel or simply improved an existing design, making sure your interests are protected can prevent legal issues in the future.
Recordkeeping and Auditing: for many industries, being in compliance with health and safety regulations or other guidelines is necessary for continued operation. This includes things like ensuring your certifications and licenses are valid and up-to-date, keeping inspection records, and accurate bookkeeping. Regular internal audits and third-party inspections can prevent situations like equipment failure, IRS trouble, and catch signs of embezzlement.
Virtual CFO / Business Advisory Services: having a dedicated CPA is a must for any growing business. These financial experts do more than just balance the books and process payments; they can act as the first line of defense between you and devastating financial issues like fraud and money mismanagement. The right Business Advisors are instrumental in helping you determine exactly where to invest your money for the best outcome.
Do you need professional guidance on how to properly invest back into your business? As a Business Advisory company, DesCPA offers a full array of business accounting services geared to propel any business owner and their future endeavors. Contact us today!
All information contained in this post is for informational purposes only, the information found on Descpa.com and its affiliates does not constitute financial advice.