With a whopping 45% of startups failing within 5 years, it’s in every owner’s interest to do whatever it takes to improve their chances of success! And one of the most effective ways to do exactly that is to reinvest any profit back into the business.
Take that approach and your operation should snowball over time!
First, though, you have to decide on the best investments to make. Are you looking for expert small business advice to help with this decision? Keep reading to discover 4 great business investments to make in your first year.
- New Employees
As your business grows and begins to turn a profit, consider using that additional capital to hire a new employee! With another hand on deck, you should (in theory) be able to generate even more revenue in the coming year. You’ll share the workload, delegate responsibilities, and focus on your primary growth-oriented tasks as well.
A word of warning, though: make sure you don’t rush this decision. Hiring the wrong person for the job can do more harm than good! Look for someone with a winning attitude, a conscientious spirit, and a hunger to learn.
- New Equipment
For many start-ups, one of the most valuable business investment ideas revolves around new equipment and technology.
Imagine a fledgling construction company, for example. If they use their profits to purchase an excavator, bulldozer, or another type of heavy (and expensive) equipment, they’ll be able to take on bigger (and more lucrative) jobs in the coming year. It’s also a way for them to compete with the other established construction companies in their area.
- Personal Development
As a business owner, one of the surest investments you can make is in yourself. Trust us, finding ways to improve your business skills and acumen can deliver a return on investment that’s worth its weight in gold.
A typical example would be the leader who’s amazing operationally, yet lacks the humility and people-skills necessary to manage a team. In this case, going on a management course might be the best investment you could ever make.
- Another Business
To really scale up your operation, think about using those profits to buy another complementary business. Just as Facebook acquired Instagram, you could look for opportunities that solidify your position in the market, generate income, and that you know already have a large customer/user base.
Of course, you’ll need sufficient access to capital and probably have to do some research on how to buy a business first! Do it right, though, and you can skyrocket your business to new heights almost overnight.
Don’t Forget These Business Investments
It’s always exciting when your business venture starts turning a profit. However, as tempting as it can be to treat yourself with that extra income, it’s crucial to reinvest it back into the operation! With any luck, the ideas for business investments in this article have highlighted a selection of the best ways to do exactly that.
Would you like to learn more about this topic and others like it? Search “Invest” on the website now.