Many times I speak to business owners that worry about spending too much for their business, and just about break even and don’t invest a penny back into their business. This is perfectly fine if you are content with the way your business is going, but if you’re seriously looking to expand your business and achieve new heights, you need to invest back into the business. One of the main reasons business go down is due to not investing back into the business, many successful business set aside a certain budget or a percentage every month which they reinvest back into their business to achieve their goals.
In business keeping your costs low is essential, or else costs can easily pile up before you know it, but on the other hand being miser and stingy with your cash flow also doesn’t help at all, to progress further you need to invest into new technology, systems, equipments to make your business more smoother and efficient, and also acquire more sales to build your bottom line.
If you have the cash flow and all your expenses are paid for, why not invest into improving your business, we all want our business to grow and there is always room for improvement to be more successful and get your name out there more. There are many aspects in a business that you could look into re-investing from, internal systems to customer experience and even more staff.
Some ideas of where to invest back into business
Marketing: You could re invest some of your budget into advertising and marketing your business, marketing is a broad topic and can consist of many elements, if something is working for you business, why not put more money into that to get more results, or on the other hand try something different, so that your broadening your avenues of sales via different techniques of marketing.
Some marketing techniques you can consider if you haven't tried yet
- TV Advertisement
- Radio Advertisement
- Bill Boards
- Buying sales leads for your business
- Online Marketing
Branding: You can re invest some of your funding into making your presence known, and building your brand image, such as redesigning your website, logo, printing new booklets and leaflets. There’s always various ways of how you can promote your brand image such as:
- Professional Website
- Corporate Events and seminars
Technology: This is one my favorite things to invest into, being a techie geek you can call me, I love looking for programs and applications that will make my work easier and more efficient, Technology could be anything to do with your business from installing Security Cameras, to buying or building an internal CRM system (Customer Relation Management System) for your company. When looking to invest into technology for your companies ensure that you will make full use of it, and also that it will make things simpler and save you time for you to work on other important things and also make your day more efficient.
Some of things to invest into:
- CRM Systems
- Accounting and Invoicing Systems
- Projects Management System
- Communication tools (phone systems, internet, support systems…etc)
Customer Experience: Keeping your customers happy in business is one of the key factors of a successful business, if your customers are not happy then they will not come back to you for repeat business and more importantly they will also tell others about their experience with your company. Customer having a poor experience could come down to many factors, such as not enough staff, causing them to wait longer, Poor product quality, not giving out the right impression of your business. What ever it may be, it will need to be resolved, that’s why many major blue chip companies invest heavily in customer experience, they would go out of their way to ensure that their customer receives the best service possible. This is what every business should aim for, when a customer comes to your business, you need to give them your best, as it may be your only one chance to ensure that they leave happily.
Staff: You could hire more staff, if your customers are complaining that they are not being dealt with on time, and have to wait awhile before they are seen to; these are signs that you need more staff to handle more customers.
Training: From time to time we all need refreshers and training, business should also set a budgets aside for training their staff, there is always new technology, tools, compliances, and regulations that we need to keep on top off, to ensure that everyone in your company is up to date with their products, and your company ethics, set out training days or camps in which they can learn the essential skills and knowledge that they need to do their day to day business / jobs more efficiently and smoothly.
Overall when you invest back into your business, you’re looking to improve something, and take your business to a new level some
How much should you invest?
After you have paid all your expenses, you still need to have some cash flow in your account so don’t go investing everything you have, I would say re invest approximately 30% – 50% back into your business. For example lets say you spend $100 a month on Ad words which brings in $200 of profit, so next month you could invest again your normal $100 that you would every month plus the $100 from the profit that you made (50%), so in total you have invested $200 and according to the trend you would have made a profit of $400, doing this slowly and regularly you are increasing your bottom line. There isn't a perfect formula that you can follow, you as a business owner would need to decide and make a judgment on what is a suitable amount to reinvest back into your business. Also reinvesting doesn't just mean putting money back into your business, you can also put your time, and efforts back into your business. If you are working 2 hours on a project which gives you potential results, then maybe consider putting in 4 hours to get more results.
Should I spend every dollar?
Not really, if you have invested already and you have money spare, don’t go spend it on things that you don’t need and wont benefit your business, put it aside in your business savings account, as today you may not need it, in the future, when you want to launch a new product or a project, you will have the funding already in place, and you never know when you may need it for a rainy day.