We all invest in our own businesses. Before your business even officially exists, you will have poured plenty of time, money and effort into it. But there will hopefully come a time when you are ready to expand as a business. Hopefully, you will have got to a point where your business is making you money, and at a point like this you can begin to put that money back into it. This will mean that your success will feed into renewed success in the future, creating a precedent for sustainable growth.
In order to achieve this, there are several things that you should be thinking about. Investing in your own business can be a difficult affair. There will be certain areas that you will want to invest in personally, but in order to make a successful judgement you should be thinking more objectively. You should want to treat your business as any outside investor would, without any sentimentality. That said, you should be using your insider knowledge to figure out where your investment will have its greatest effect.
Fortunately for you, we’ve put together a simple little guide for your first-time investment in your own company. Have a read through and let us know whether it was helpful, as you make this momentous leap forward in your professional life.
First of all, investing in your business is all about expansion. If you have the money to be returned to your operations, then it is easy to assume that you are making a profit. And if you are making a profit, then we have to assume that you could be making more of a profit. Investing in your business is about maximising the reach of your business by expanding its core operations capabilities. So you should think about what elements of your business would allow you to find and accept more work.
First off, you should be thinking about getting that work coming in. Maybe you’ve established a few key clients, and they are currently keeping your business afloat. But now you should be looking for more clients in order to expand your production processes. This means marketing and promoting your services, either indirectly or directly. To achieve this, you should have a marketing and sales team that are able to directly target potential new clients whilst also promoting your general reputation.
You might also want to make room in your budget for general expenditure in this regard. When you are courting new contracts and new business, you will often have to take a number of meetings and establish a personal relationship with your new partners. This will all take up time and money, and it will probably require a few new employees. Investing in this whole process can often feel a bit open-ended, as you have no idea how your money will come back to you. You may spend a small fortune before that new client selects you, making it all worthwhile. But if you’re serious about the growth of your business, then it is something that you should be looking into.
You should also be thinking about your operations. Once you’ve secured that new client, you have to make good on whatever promises you made them. Maybe you have a huge order to fill, or maybe you have to make a particular service available to the public on a limited timetable. In any case, you will have to make sure that your business is capable of doing what you said you would.
Improving your operations infrastructure should not only be a practical necessity. You may be able to just about get by with the old infrastructure you had, but you may only just meet your targets. When you get a new client, you have the opportunity to impress upon them how good you are. You should be making sure that you are coming in before any deadlines, and at a higher quality than promised. Once again, this will mean that they consider you to be a viable future partner and will be a part of your sustainable growth.
In investing in this regard, you should be thinking about a variety of things. First of all, you should think about your physical premises. Will there be enough space to get what needs to be done completed? If not, you may want to use Saracen commercial agents. They can help you to relocate your office, as well as redesign it to suit your needs. Redesigning and tailoring your offices can be one of the most worthwhile investments that you can make. It will establish your presence in the marketplace, whilst also making sure that you are capable of meeting your targets.
You might also want to think about making more hires. This will be a bit of a scary investment to make, as it will not be a one-time thing. When you grow your workforce, you will have to support them over many years or downsize, which can itself be an expensive and unpleasant affair. In this regard, you should be thinking almost exclusively about the concept of sustainability. You should be thinking about whether the position that they fill will enable enough expansion that will guarantee that their salary is paid. If this is not the case, or if it may not be the case, then you should be thinking about whether you can justify creating the job.
Finally, you should also be thinking about investing in regards to your general rate of return. As the owner of a business, you are still worth a certain salary. It is likely that you are forgoing this, in favour of growing your project while you have the chance. But when you invest you should always have one eye on the time that you will be personally profiting from the business. Don’t just pour money down a bottomless pit in this regard: think about when you’re going to get what you deserve. Remember, it’s a business, not a charity.