6 Ways to Reinvest Your Profits
We have all heard the phrase “money makes money” countless times, and in this article, we will talk about how your money can and should make you more money.
As a business owner, especially if you are a new one, it can be tempting to pocket your profit as soon as you are able to make any. I mean, that’s why you started a business in the first place, right? However, you need to hold that thought and think about how you can reinvest your profit, and take on the opportunity to exponentially grow your business. Here are 6 ways to reinvest.
Old-fashioned marketing is great and works for most businesses, but the year is 2020 and digital marketing is what you really want to explore. A very common and honest mistake made by business owners is delaying paid marketing because they believe that they can achieve their targeted sales through organic reach. Unfortunately, unless the planets align and everything works in your favor, that will not be the case. You need to fit into the system of being an ecommerce seller, and in order to do that, there are algorithms to follow on your selected platforms - identify your platforms, be it social media, or any other marketplace, so you can effectively market your product.
- Outsourcing Tasks
Entrepreneurship is hard, we get it. Sometimes, tasks become overwhelming and you feel like you really need help because you are bound to come across tasks that take up too much time, that you don’t have the skills to execute, or that are unfavorable for any valid reason. So, consider outsourcing these tasks. It’s not necessarily a bad idea to hire more people and have a bigger team working with you, but sometimes it costs less and makes more sense to just outsource. There are agencies and freelancers for basically everything these days, so don’t worry about having to look for one that suits your company. Outsourcing may cost you money, but it saves you a lot of time, and in the world of business, time can be worth more than money.
- Investing in Your Team
A motivated and highly skilled team makes a great company. Invest in the growth of your team, and their livelihood. In Japanese business culture, there is a term called “kaizen”, which roughly translates to “continuous improvement.” “Kaizen” is a practice that is common in almost every successful Japanese company, so much so that other companies around the world have also adopted the concept. Reinvesting in your team is to “kaizen” your team, which subsequently reflects as continuous improvement for your business. Discuss with your team and identify areas that need to be improved, and invest in it. Aside from that, try to also introduce interesting employee benefits and offer commissions wherever possible. A happy team whose worth and value are acknowledged is a motivated team, and a motivated team can do wonders for a business.
- Investing in Yourself
Ideas mean nothing without execution, and setbacks become problems when there is no solution. So, don’t forget to invest in yourself. Equip yourself with the ability to execute your ideas for your business, and to grow on your potential as a business owner. The more you know about every subject matter surrounding your business, the better it is for you as a leader. Take management or business operation classes, or go online and source for marketing or any relevant skill classes. Stay humble and keep learning because our journey as entrepreneurs knows no end, and it will be wise for us to keep adding to our inventory of skills and knowledge.
- Rank up Your Company on Google Search
If you are wondering how, let me explain. You need to improve your SEO, and in order to do that, the first thing you should do is invest some money into getting your company a website if you don’t already have one. Next, invest more time and money into improving your SEO by allocating resources to create content that will drive your SEO. There are many things to learn about SEO, so take your time, learn and apply what you can. Get expert coaching or outsource if you need to. Try to ensure that you have a consistent supply of high quality content because the end goal is to show up as one of the top results on a Google search. It is not easy and will be a long and winding journey, but you will get there.
- A Cash Buffer is Extremely Necessary