Does this old saying give you the jitters?
“You’ve got to speculate to accumulate.”
As a business owner juggling the incomings and outgoings on a daily basis, you’d be forgiven for feeling daunted at the prospect of investing your hard-earned money – often there’s an element of risk and you may be asking:
“Is it really wise to spend money to make money?”
When you’ve accumulated enough capital in your business to start thinking about investing for long-term growth, it’s a good idea to focus on areas that are the biggest financial drain. Minimising these expenses can be a great first step on your investment journey. Here are some key areas to consider:
Marketing
Marketing budgets vary hugely from business to business and this isn’t a ‘one size fits all’ investment. Whatever the nature or size of your business it’s important to set aside a marketing budget that meets your needs and aspirations. Be clear on what you’d like your marketing to achieve and the return you’re aiming for. And we’re not talking about likes, shares and follows on social media (although these may help to raise your profile) – we mean the marketing activity that generates leads and gets the phone ringing. Constantly monitor and analyse your marketing results. These results are essential to point you in the right direction of where to invest your money. When you switch your mindset from seeing marketing as a cost to seeing it as an investment it can help you to achieve long-term financial growth for your business.
Training
Training for you and your employees is one of the smartest investments you can make to maximise your company’s potential. This is especially relevant if you’re working in a complex area that requires a lot of expertise. Professional accreditation and working to the highest industry standards could set you apart from your competitors and give your customers an extra vote of confidence in your goods and services. Even better you might consider cross training – that is having your employees train each other in dedicated sessions – this can improve your success and give you more ‘bang for your buck’.
Equipment
Does your equipment and software support you to work quickly, efficiently and effectively? Are you frequently cursing your old printer or exasperated about your clunky payroll system? Tired, outdated equipment can be a drain on your time and energy and have a negative impact on your level of customer service too. If there are day-to-day requirements that would benefit from your investment, tackle this sooner rather than later. Those simple quick wins can add up to long-term business gains.
Books
Books, Ebooks, audiobooks and podcasts – whatever your preference, invest in books that will help you to work smarter, be inspired and hone your business skills. For very little investment you may find a gem of inspiration that takes you and your business in an exciting new direction.
Time
The most precious commodity of all? It’s a cliché, but time really is money. And how you choose to invest your time will have a massive impact on your business. From time management to systemisation, there are lots of ways to make sure that you invest your time wisely. Your work/life balance will thank you for it.
Looking for more advice to help you invest wisely?
We’ll be delighted to help. Contact the team.