Different Ways To Invest In Your Growing Business

It is not a bad problem to have; how to reinvest your business profits and continue to grow and succeed. It can be a daunting prospect though, you have worked hard for those wins and you don’t want to waste that hard work with a plan that doesn’t bring increased returns, or worst costs you money with no payback. 

There are a number of factors to consider what to do with your business profits, such as;

  • Maintaining enough capital for a solvent business and that complies with companies legislation (where applicable);

  • Whether you want a short or long term return on any reinvestment; 

  • Whether you want to withdraw them as salary, bonuses or dividends for your own personal return;

  • The future strategy of the business (is it to grow, remain stable, or wind down). 

Assuming you want to reinvest your gains back into the business you then have a second important decision to make; what is the best way to use those profits to continue to grow the success of the business. 

The best option will depend on the nature of your business and industry (i.e. are you local or global, are you brick and mortar or online, what does your supply chain look like, and how many employees do you have to name a few considerations). 

Here are some potential ways to invest in your growing business that may be right for you;

  • Expand your business premises - If you are a physical site then consider opening new premises or expanding your existing site, using a civil construction company. The benefit of expanding your current site is that your customers already know where to find you, by opening a new site though you can attract more customers. 

  • Digital Investment - In the modern world every business has some reliance and use of modern technology, it is simply a question of how much technology you use. When it comes to future growth look at your current technology and whether it is time for an upgrade as you grow. Alternatively, or additionally, consider if there are areas where you aren’t using technology and whether you should in the future, perhaps there are processes you could automate or procedures that could be streamlined. If the digital world is overwhelming, don’t worry, you don’t have to delve into the world of cryptocurrency or the metaverse, it could simply be a wifi upgrade, a financial accounts package upgrade or a new website to drive more traffic to your site. 

  • Online Presence - Love it or loathe it social media is here to stay, and the important role it plays in promoting your business is only growing. If you don’t already have a dedicated social media manager consider if this would be a worthwhile investment, and ensure you have done your research on which social media sites your demographic favours. You don’t want to spend hours creating TikTok videos for a market that primarily engages via Instragram.

Always consider seeking expert advice before any major investment of funds, including your accountant or tax advisor. 

Alison Morgan