If you have been running your business for a while and are looking to grow your company, it might be time for a shot of cash to help you achieve your goals.
Why It’s Good to Reinvest in Your Company
Simply put, reinvestment means growth. If you take all the profit after you’ve paid your vendors and put it into your own pocket, you’re stunting your own growth as a business owner.
Reinvestment means you can get technology and tools that make your work easier. It means you get to explore new potential products, or conduct market research to better understand your customers. It means you can afford to hire help, taking some of the pressure off of you to do it all.
Determine What You Want to Do
If you did have extra money, what would you do with it to grow your business? Would you buy a new computer? Invest in office space? Staff? Marketing?
Take a moment to make a list of the top priorities you feel will help take your business to the next level.
Your Options for Reinvestment
Now that you know what you want to do with the money, find it!
If your profits support it, set aside some of your money each month for your goals. That might mean taking a smaller paycheck, but I assure you, it’ll pay off and start putting more money back in your pocket once you hit your stride.
You can also consider taking out a small business loan if you need a bit more funds than you can easily save. Or look to investors, if you’re willing to part with a percentage of your company’s equity.
Get a Game Plan
With the money you’ve got, create a budget to achieve your top priorities. You might not accomplish them all right now, but it’s still a good idea to budget out all projects so you know how much you’ll need down the road.
Assign a dollar value to each action item you need to take care of to reach your goal.
Let’s say your goal is to increase sales 25%. You will invest in marketing to get there. Here’s what your plan might look like:
- Hire social media consultant to manage our accounts: $1,000/month
- Hire part-time sales consultant to expand our territory: $5,000/month
- Subscribe to customer relationship management software: $50/month
Seeing everything listed out, you might realize you can’t yet afford that sales consultant. Your option is to rebuild the budget to fit your finances, or perhaps see if you can cut down on hours to cut down on what you pay.
Check in on Results
Set a timeline for your goals, and check back to see if you’ve accomplished them. If not, you may need to invest more money into achieving them, or reassess your goals.