by Sharon Jones
As a new business, the most exciting thing that you can hear from your accountant is that you have made a profit in your first year. The number of companies that don’t even make it to the end of the first year is staggering enough as it is, so to get to the end of that year, having made a profit? That’s a huge achievement!
While you may follow the tradition of framing that first dollar of your profit and hanging it in pride of place, the consideration must be given to the other dollars sitting in the bank. Whether you invest in things like swyftx.com.au/, or you choose to go ahead and buy an office to rent out to other people, you can choose how you spend these profits. Other than a glass of champagne and a pat on the back, you need to find something to do with that money rather than let it just sit in the account. You may not have a clue, but your accountant certainly will have some suggestions. We have some, too! Below, we’ve got five things you could consider doing with those incredible first profits your company has earned.
Invest It... In The Business
A lot of startups follow the same pattern of putting their profits into their business once more. It’s a smart choice to make. This is a personal and a professional reinvestment, as you believe that your business deserves the investment once more. Make sure that you discuss this with your finance team, as they’re going to be the ones to tell you if this is a good idea or not. It’s a valuable strategy and a great way to spend those long-awaited profits.
Invest It... Into Your Marketing Strategy
Being a new business, you may not have had much of a chance to really grow your marketing strategy. While most online marketing solutions are pretty cheap, that doesn’t mean that you can’t pay a little more for your marketing. Paid search is growing, and you can invest in your analytics and performance metrics. You could also afford to outsource your marketing strategy to an agency outside your business and free up the time your staff has.
Invest It... In Your Team
You could put those extra annual profits into hiring a new person or two to work on your team. Better people working with you will streamline your business and take the pressure off of your existing employees. You could afford better talent, or you could choose to invest in the people who are already working with you. Adding more bonuses and perks is going to motivate your existing team and make them way more productive.
Invest It... In You
Sometimes, you can stand to improve your own skills. Training courses and networking events cost money, so invest in yourself and attend these with the view to doing better and being better informed in your industry.
Invest It... In Help
Do you need expert guidance in your industry? Why not invest your profits in mentors who can help you to scale your business and grow it to new heights? Everyone could use extra help every now and then - including you!