As your company grows, it will start generating greater profits. Therefore, you will need to choose how you will allocate the money sitting on your business account. Sure, this doesn’t mean spending the leftover money on your personal needs and interests or creating a cash buffer. Your goal is to reinvest your company’s profits strategically so you can gain a greater ROI.
Here are a few tips that may help you reinvest your company’s profits.
Promote your Business Online
The number of companies investing in digital marketing keeps growing. According to The Manifest, 99% of businesses are planning to maximize their investments in at least one online marketing channel in 2019 and beyond. Therefore, if you keep ignoring the promotion of your business online, you will soon start lagging behind your major competitors.
There are numerous ways to build your online presence.
For starters, build a professional website that engages users, increases their awareness of your brand, and inspires them to purchase from you. Every aspect of your website, from your navigation menu to your website speed, should increase user experiences and help you achieve greater conversions.
Still, just having a website is not enough. To get yourself noticed by the right audiences, you will also need to increase its visibility on Google. This is where SEO steps in. Hire a digital agency or build an in-house SEO team that will optimize your website pages for the right keywords, generate qualified leads, earn top-quality links for you, and create a solid content marketing strategy that educates and builds trust. Social networks are also an inevitable aspect of your digital marketing strategy. They give you the opportunity to build closer relationships with your audiences and form a unique online community that increases your brand perception. When doing digital marketing in-house, you will also need to invest in the right toolset that will automate your team members’ jobs and help them track the performance of their campaigns efficiently. Given that building a digital marketing team and investing in the right tools, equipment, and education programs requires lots of experience and significant money investments, hiring an agency will probably be a more affordable option for you.
Provide Employees with Professional Development Opportunities
Attracting new employees is important, but retaining existing ones is can make or break your business. It brings more stability to your business, contributes to building a unique corporate culture and, therefore, saves you loads of money. Namely, have you ever thought about the real costs of the employee turnover? Every time you hire a new team member, you need to invest in cross-channel job posting, the process of onboarding a new team member, and their training and education. Not to mention the costs of lost productivity and engagement. Therefore, your goal is not only to hire new and experienced people, but also to make them happy and inspire their loyalty to your organization. They’re your most valuable assets. Now, one of the most effective ways to do so is to provide employees with career advancement opportunities. Let them learn and practice crucial skills that will benefit your organization in the future. This increases your employees’ satisfaction, indicating that you appreciate them as individuals and that you have big plans for them in the future. Investing in employees’ professional development will also help you brand your organization as highly professional and employee-oriented, giving you more opportunities to attract top talent.
Invest in Bonds, Stocks, Forex, and Cryptocurrencies
While stocks are stakes of ownership, bonds are defined as debt. Stocks are generally riskier than bonds in the short term, given that you could lose your money overnight. Precisely because of that, you will need to do lots of research before you buy into a certain company. You could also turn to forex trading that has become the world’s most fluid market. Some of its benefits are simple trades, greater accessibility and predictability, and high liquidity, which makes it less risky than penny stocks, for example. Most importantly, forex allows making smaller investments. Since it can be a highly volatile market, you will need to choose reliable forex brokers like Ever Forex, IG, XTB, or Pepperstone.
Finally, you could also turn to cryptocurrencies that have been gaining momentum over the past few years. One of their greater disadvantages is a high coin volatility, which prevents them from becoming a reliable technique of exchange. Remember that the crypto industry plummeted from $870 billion to $100 billion in 201 8. This is where stable coins step in, as they combine the features of cryptocurrencies and traditional currencies and are pegged to stable assets. Some of the most reliable stablecoins are Tether, MakerDAO, Gemini, and TrueUSD. Outsource the Tasks outside your Industry
When starting a business, many entrepreneurs want to be jacks of all trades. Operating within limited budgets, you will probably spend countless hours learning the basics of accounting, SEO, or graphic design. Soon, these activities will consume most of your time, preventing you and your team from focusing on your core business tasks. Precisely because of that, many businesses decide to outsource all responsibilities outside their industry to the experts. For example, you could hire an agency, a consultant, or a freelancer to handle the aspects of your job that are outside your competences, such as accounting, bookkeeping, the abovementioned SEO and digital marketing, human resources, legal aspects of your business, graphic designers, etc. This is one of the most effective ways to save up and, at the same time, have an opportunity to focus on what you’re really good at.
Improve your Business
Many businesses decide to use their first profits to revamp their business operations. For example, you could purchase modern equipment, invest in automation tools that would streamline your business processes, or create new customer experience strategies. Some would even decide to buy a property instead of renting it out, which is a profitable solution in the long run. You could even expand and buy a business or partner with a business in a similar industry. For you, this means more profits, access to new markets, more customers, and greater workforce. Another great option is to expand your company’s offerings and, in this case, grow your sales. These are all strategies that may require significant money investments, but they will help you improve your business operations and grow your company faster.
Diversify your Business’ Profits Wisely
It’s always a good idea to diversify your investment portfolio, but you shouldn’t rush things. For starters, take care of your business’ growth. Hire someone to help you promote your business online and expand your business to new markets. Prioritize your corporate culture and employee satisfaction by providing competitive employee benefits. Save time and minimize risks of failing by outsourcing the tasks outside your competences. Finally, invest in bonds, stocks, and foreign exchange to grow your revenue.
Your goal is to start with what you know and your ROI will grow organically and gradually.