Everyone is dreaming of establishing their dream businesses. In movies, CEOs’ lifestyles have been portrayed lavish and living in worry-free lives. It can be true to some millionaires. But in real life, not all CEOs are living in a stress-free business.
Managing a business and handling people in every department is not easy. You are giving commands, but making a decision is difficult because you need to ensure that it won’t hurt the productivity of the company. As your business grows, bills and other expenses are piling up because of the growing needs and demands.
It sounds weird to hear a piece of advice encouraging entrepreneurs to spend money amid the piling up of fees. However, if you invest right, you will avoid significant expenses and even earn more money because of improving business productivity.
Benefits of Investing for Your Business
1. Improve wealth
The main goal of investing is to gain more money. Most startup companies spend their initial profits in reinvesting in business improvements, which is in line with their current strategic plan.
Most of the time, business improvements include infrastructure, equipment, streamlining business processes, and improving customer experience. These areas always need improvement because these are the sources of profits.
2. Expecting a higher return of investments
Every penny spent is crucial in business. As an owner, you need to study first if the investment will bring long-term benefits or how much return on investment it will give. By choosing the right investment, you can earn up to more profits and even use it for the long-term. Before making decisions in exploring investing money, you may seek the help of your team to identify what areas need improvement and other business needs.
3. Prepared for inflation
During inflation, prices soar high, and it happens every year. Saving money in the bank doesn’t guarantee safety from inflation. Businesses could survive the inflation phase if owners invested essential business improvements that will benefit them in the long run.
4. Meet other financial goals
As mentioned earlier, investment helps grow profits, and it can be used to meet other financial goals. In business, you can use it for business expansion, spend it for business improvements, and rewarding the services of loyal employees.
5. Business expansion
Through investment, your business grows continuously, and it helps you to expand the service. However, deciding to expand needs a careful review. You will consider checking the service performance, customers’ feedback, which area you should expand, and how much demands need.
You may consider partnering with investors to support your business plan. Through expansion, you create new job opportunities and new products. Many investors want to develop and establish new businesses and turn them into successful entities because, in the long-run, these investments will bring ROI.
8 Ways You Should Re-Invest Your Company’s Profits
1. Sales and digital marketing
This team brings profit to the company by introducing your brand and services to the right audience. Salespeople are the ones who explain to potential clients why choose your product. As the name suggests, their goal is to bring sales to the company.
Marketing or digital marketing people should work along with the sales because both of them are monitoring the same market, and able to maintain consistency when it comes to introducing the brand.
Many of the startups wait several months before deciding to invest in marketing because they don’t know where to start. By hiring the right people in your marketing department, you will keep on track on the market. As your business grows, you need people who will keep track of the campaigns. If you have little experience with marketing or have no idea how marketing works, consider outsourcing to an agency and start studying as well.
2. Digital Tools
Accept the fact that most of the transactions and tasks need a helping hand of technology. Businesses can survive the industry game if owners adapt changes-one of them is to embrace technology. It is advisable to invest in important digital tools, mainly if your business depends on online transactions and your marketing targets online users.
For startups, it is not easy to decide which digital tools you should prioritise. Owners should analyse the needs of each department. Usually, priority tools are useful in human resources, sales, customer support, and IT.
3. Human resources
The HR team is crucial in every enterprise because this group is responsible for finding the right person for the job. As the business grows, there will be times you’ll be swamped with workloads. There will be no enough time for you to do a background check and even interview candidates. Through the help of the HR team, they will be the ones to find the right people for the team.
4. On-line and off-line networking
Making friends and expanding connections will help you keep earn more profits and keep your business alive. Establishing smart connections are crucial to any enterprises-whether it is small or big corporations. New or previous connections should be kept on data because both can provide referrals, new clients, potential hires, and even profitable work orders.
How to expand your connections?
By being active or attending industry conferences and networking events are the best way to meet other business owners. You will gain more knowledge and even get inspirations for your next business idea from leaders.
Attending panels may require some expenses, including travel expenses, tickets, and sponsorship. Regardless of how much you will spend, you’ll surely get lots of benefits apart from getting experiences.
Expect more workloads to come once clients avail your services or earn the trust of shoppers (for e-Commerce). Admit it, and you’ll need more people to do such tasks. Hiring people may take a lot of time. You may want to ensure you get the right people, especially if you are looking for people to take the admin positions.
In case you need to get people to work for a specific project right away, you may consider outsourcing people. This service will be the one to find you some skilled workers. They have a database of qualified candidates.
Through the help of outsourcing, on-going tasks will continue to progress. It will be easier for you to find people to work on tasks that need to be done in the target timeline.
6. SEO maintenance and web development
Most businesses have websites because this is the platform for any transactions. Most startups think after building the websites, everything is ok, and they don’t need the help of web developers anymore. Sadly, websites require maintenance, and getting the professional web developers are long-term investment-especially when it comes to securing the website.
In today’s digital age, as technology improves, people have adjusted as well. Though it provides convenience, it doesn’t guarantee safety in online transactions. Of course, you don’t want to be questioned because your website is not secure. You should hire web developers to secure the website and maintain it to keep good credibility online.
Depending on CMS, there are updates that developers only know and handle. Instead of hiring them for a short-term period, why not keep them because they are helpful in the future?
Same with hiring SEO services. Google algorithms have always been updating. Owners have no time to keep up with it. By hiring professional SEO, the websites will be updated with the changes. SEO and web developers should work along because the tasks are related to each other.
Hiring SEO specialists are crucial as they also help to improve the content for the website.
7. Hire a career coach
Keeping a business means working with a team. Approving and creating strategic plans are not easy. Entrepreneurs may get into a point that they are unsure of creating a strategy. If that’s the case, they may consider hiring a career coach. This professional can guide executive leadership and building a business strategy. They can even give you tips on effective communication to investors and handling conflict between employees.
8. Consider hiring a financial advisor
Hiring a financial advisor is significant in business. This professional is also known as a financial planner. He/she advises clients regarding investments, taxes, estate planning, insurance, mortgages, and even retirement.
Due to heavy workloads and busy schedules, business owners have no time to research about finances. With that, he needs a helping hand. By hiring a financial advisor, it will be easier for him to look for financial improvements and consider investments that will benefit him in the future.
Important Tips to Take Note
Not all times, you need to spend a lot of money to improve your business, particularly in the sales department. Believe it or not, by registering your business to Google My Business, you will be able to increase your sales.
Most people use Google to find what they need or whatever question they want to ask. So this means you should prioritise optimising a website. One of the basic things to do is to be listed on Google My Business by creating a profile.
By creating a profile, you are also establishing credibility. Not all listings are allowed to be published because Google checks the information submitted by the people. Once your submission has been approved, your Google My Business profile will appear in Google Maps and Google Knowledge Panel. You can see this on the right-hand side of results pages.
Maintain Positive Google Reviews
Maintaining five or four stars attracts clients because it reflects how excellent your services are. Usually, many consumers want to hear the comments of others who have experienced trying the service.
Improving SEO strategy
As mentioned earlier, it is crucial to hire an SEO specialist in the company. Apart from optimising keywords, an effective SEO strategy improves branding and sales as well. SEO team and marketing should team up to create a strategy that will improve branding and ranking of the website.
Keep the Social Media Active
No matter what social media your customers using, it is important to reach them through these channels. Apart from expanding the reach of your content, another use of social media is to get the feedback of the loyal customers.
Facebook, Twitter, YouTube, LinkedIn, Instagram, Google+, and Pinterest are among platforms that are frequently used by most users around the world. Facebook has garnered over 1.2 billion active users. With that, marketing on these social media platforms is inexpensive and extremely useful because you know where to find your audience.
LinkedIn – This social media platform connects people to professionals and companies. Unlike Facebook and Twitter, this social media network focuses on employment-oriented service.
Many people treat LinkedIn as a resume profile. However, you should treat it as a pamphlet or letter to your ideal customer.
Facebook – It is the most popular social media networks. It helps advertisers to promote content through its Facebook ads. Since there are lots of users in this platform, Facebook ads aim to expand the reach of the audience by suggesting your content to the users. When it comes to expanding a business, better use Facebook’s powerful advertising platform.
Twitter – It is the best platform for connecting to influencers and experts. You can get more free advice and engagement through a Twitter Chat. It is frequently used as a customer service platform.
Pinterest – This platform is the best place to share images apart from Instagram. Businesses that will benefit from Pinterest features are restaurants, travel agencies, and digital marketing agency. By sharing beautiful images, they can call the attention of the users. Pinterest truly helps drive a lot of traffic to your website, and it gives you the freedom to introduce your products to a broad audience.
Instagram – Instagram is more than about sharing selfies and awesome images. Since the major materials share on this platform are images, it is easier to attract consumers to check out your page or website.
Instagram was launched in 2010, and this app is for photosharing. Believe it or not, many people did not expect that in six short years that the simple app would boast more than 700 million monthly active users. Today, users are not only sharing photos. The platform allows them to share videos. With that, many online users have loved this app.
Since Instagram allows video-sharing as well, marketers take the opportunity to reach their audience through this app. The benefits of using this social media network are boosting branding visibility, improving engagement, improving SEO, and useful tool for visual marketing.
Youtube – Admit it. You spend more time on a page if it contains video. So this it is logical to say that Youtube is a useful tool to promote the brand.
Just like Facebook, Youtube has garnered many users in a short time. Most audiences want to watch video content either to entertain or to learn. Youtube helps you distribute your content in a video form. However, make sure you produce compelling content.
Your Youtube marketing campaign will be useful if you provide the content that most audiences want to see. Apart from that, your content should aim to educate them. Remember, you are introducing a product. The audience wants to know what are the benefits.
Keeping up with clients
Current customers are among the essential assets of every company. They are the best resources for increasing revenue, and they even drive sales through their referrals. With that, it is vital to keep communication with them open.
Managing a business is not easy. It is true planning or let’s say picturing your ideal business seem easy in your imagination. But in reality, there are lots of things that you need to consider. Despite challenges, there are many ways to prepare for it. You may consider taking a short course in business and marketing.
As a business owner, you should understand how every department works. Changes are inevitable in business and marketing industry and digital marketing as well. Not all the time, you can catch up with your marketing team to build a strategy. With that, allow your people to monitor the industry and give them the freedom to express their creativity. Let them make a campaign proposal and ask them what areas need improvement.
Never forget to hire people that will assist your customers. Always remember, your business is alive because of loyal customers. With that, get the right people to handle customer support.
For startups, try to find time to attend such events. Apart from finding business partners and contacts, you will learn many things from other business leaders. You will also get some ideas on managing your employees and business strategy as well. Being active on such events will give your opportunity to promote your business.
Making a business successful takes time, effort, and luck. It is not easy, but it is worth to invest in. Soon, you are not the only will enjoy the benefits-it could be your family and the people who are part of your company. Keep learning, and never lose hope.