It doesn’t get any better than this: you’ve worked hard – really hard, you’ve made some smart business decisions along the way, and you’re finally beginning to see a profit at the end of your business year. Congratulations! What now?
As any entrepreneur knows, an enormous amount of time and energy goes into achieving the financial goals of a well-constructed business plan. Those who are wise enough to take advantage of the power of delegation, however, both in-house and through the outsourcing of key roles like bookkeeping, have been shown to accomplish their financial objectives more readily and in a shorter period of time than those who don’t. Just the same, many small business owners are so wrapped up in the goal of turning a profit that they don’t always stop to think about what they’ll do with all those dollars once their dream of success becomes a reality.
You’re Finally Making Money – Now What?
If you’ve finally reached the enviable position of making more money than you need to survive, the biggest favor you can do yourself is to consider reinvesting your profits back into the growth of the business that got you where you are today. By all means go ahead and enjoy that well-earned vacation,
but bear in mind that as a small business owner, you should never stop looking for ways to increase the value of your company, whether it’s through the exploration of new prospects or the shoring up your current market position.
While some owners inevitably find themselves reluctant to part with their hard-won earnings once the long-awaited profits begin to roll in, it’s important to recognize that without growth, your business is significantly more likely to stagnate, wither, or simply die out altogether. The notion of investing money to make money continues to apply whether you’re just starting out in business, or have begun to see a regular profit every year.
Here are five of the top strategies you should consider when it’s time to reinvest profits back into your professional enterprise:
Refine Your IT Infrastructure
Improving your company’s infrastructure, in terms of its computer hardware and software, is one of the best ways to increase efficiency and, in turn, your business profits. If you’ve had to skimp and settle for less than top-of-the-line software programs, laptops, desktops, cell phones or tablets, this could be the
ideal time to upgrade. The better equipped your business is to work reliably and in real-time, the better service you can provide to your clients.
Take on More Help
Take the time to really consider the pros and cons of hiring additional help, but remember that this opportunity to disperse some of your current workload to one or more qualified applicants can lead to higher productivity overall. While investing in new hires should always be approached with caution due
to the sizeable price tag that will become a regular part of your expenses going forward, contractors, part-time staff, and outsourced services are all viable ways to avoid the costs of full-time, salaried employees.
Ramp up Your Marketing
This is a great time to consider spending some of your hard-earned dollars on the expertise of a professional marketing company or freelancer. A lot of small businesses have seen growth through inbound marketing. Many small business owners do what they do very well, but have neither the time nor the knowledge needed to figure out the best way to tweak their online presence, or to initiate or expand on an effective marketing scheme. Take advantage of the people who do this type of work for a living. They’ll be only too glad to show you exactly what you can expect from their efforts where your particular company is concerned. For our company, we've always said that growth planning always leads back to sales and marketing. Period.
Expand Your Networking
When the good times roll, don’t forget the clients who helped make your business what it is today. Investing in a little “face-time” with your customers is a good way to solidify current relationships, and to renew their enthusiasm for everything you have to offer. Make the time and the necessary travel
arrangements to visit with out-of-town clients, and set up lunch or dinner meetings with those who are close by. This is also the perfect time to acknowledge loyal customers with thank you gifts and other
meaningful perks. Just don’t be surprised when your generous efforts lead to additional business or new clientele.
Continue Your Education
One of the best investments you can make in your business is the investment in yourself. Continuing to update and educate yourself through professional workshops, training seminars, courses and trade journal subscriptions will go a long way toward helping you run your company even more successfully
than before. And this strategy should extend to your employees as well. Any staff that’s worth keeping is worth investing in because as every business owner knows, the more help you have along the way, the more profits you’re likely to enjoy in the end.