Reinvesting In Your Business

By Zamantolo Fakudze

You are probably familiar with the phrase “you have to spend money to make money”. Although it seems like a cliche saying, it’s true. You do need to spend money to make more money and the best way to invest in your business is by putting money in things that will help you save money and/or time, or will help you earn more in the future. 

Below is a list of seven things you can do to reinvest profits in your business.

  • Reinvest Profits into Growth Opportunities

Being a business owner gives you a unique view of the world that most people don’t get to see. If you’ve seen interesting new business opportunities come about throughout your tenure, and you have spare cash, this may be the time for you to consider reinvesting your profits into testing one of those growth opportunities.

  • Reinvest Profits into Marketing Your Business

Perhaps one of the most exciting ways to reinvest in your business is to funnel additional funds toward your marketing efforts. This has a direct impact on the growth of your business by bringing in more revenue and, given that you know how much business your current marketing efforts generate, it’s relatively simple to estimate the impact of an increased marketing budget.

Make sure that you are estimating the impact of that exact marketing channel. If half of your business comes in through word of mouth, your marketing budget will have no immediate impact on that cohort of revenue. Think of your estimated increase in revenue as an upper limit, not as a promised return. 

  • Invest in New Hardware

Has your computer been slower than normal lately? Investing in hardware can save you money in the long term if it can help you and your employees work more comfortably, effectively and/or efficiently. When reinvesting your profits into new hardware it’s best to look for investments that you deem valuable. 

For example, buying a new computer because it’s faster and more effective is probably worth it. However, buying a new computer simply to have the latest model when you just upgraded the year before may be wasteful.

  • Invest in Time-Saving Software

One thing most business owners know is that there are never enough hours in the day. If you have the money, consider investing in software that can save you time and help your business run in a more automated way. The right software can give you and your employees hours back each week. 

  • Invest in Employee Morale

Many employees are deciding to change jobs as they look for more flexibility, more pay, and better benefits. High employee turnover is costly and can negatively affect your business so it’s best to do what you can to keep your top employees happy and wanting to stay.  

One way to foster a great culture, and ensure that everyone is on the same page is to create an employee handbook. This tool is an essential resource for small businesses because it lays out expectations for everyone in the business.

When trying to determine what your workforce values, sometimes the best thing to do is to ask them. You could send out a survey asking what employee perks and benefits are most important to your employees, and even ask them for suggestions. Finally, at the end of the day, don’t underestimate what a bonus or raise can do to keep your top performers committed to your organization.

  • Invest in Employee Growth

Nobody wants to stagnate in their career. If your people can’t grow within your business they will eventually find another place where they can grow. Investing in employee growth can benefit you in many ways. First of all, it can keep your workforce engaged and stop them from getting bored and looking elsewhere for more challenging and exciting work. 

Secondly, it can help them become better at their job as they learn more and become more efficient and knowledgeable. Finally, if you’re thinking about the long-term strategy of your business, investing in employee growth can help you groom tomorrow’s leaders within your organization.

  • Invest in Yourself  

Are you the same leader you were a year ago? If you aren’t growing you may be stagnating. In addition to investing in your employees’ growth, it is also important to invest in your personal and professional growth. Is there a new skill or technology that could improve your business? 

Investing in yourself could mean anything from taking time off to reflect and plan the future of the company to taking a course or hiring a business coach to help you take your business to the next level.

Zamantolo Fakudze is SEDCO’s Communications Officer.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *