Any entrepreneur or small business owner will tell you that no matter how high their profit margins are, there was at least one moment in time where writing out checks felt like throwing dollar bills straight into a windstorm.
3 Business Investments with a Favorable ROI
It is common knowledge that it takes a significant amount of capital to get a business off the ground, but it is less commonly known that to find sustainable success, you will have to continue that investment model.
Discussed below are three common approaches to growth and development that can help you identify the best areas of your specific business to invest in to create a favorable ROI.
During the initial stages of opening your business, you probably needed much more cash on hand to get things going than you will once you are in business and turning a profit.
However, you will still need to figure out where you can find funding to allocate towards the necessary spending that comes along with re-investing back into your own business. When applicable it is not uncommon for business owners to put personal money into their companies.
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Since loan rates vary depending on if they are taken out by an individual or a business, sometimes it is more financially savvy to borrow money from yourself, or in your own name, to dedicate towards business needs. In some cases, even a simple rearrangement like a refinance can help reduce monthly expenses so it frees up extra money for your business.
One way to free up monthly cash is to refinance your existing student loans into a new loan with a private lender. Not only will this provide you with an opportunity to reduce your monthly payment you will also secure a lower rate which will positively impact your total amount repaid.
Through this strategy, you have now created a cash flow to funnel into your business without having to completely reorganize your personal, or professional budget plan.
For the most part, technology will almost always yield a positive ROI. Technology exists to create efficiencies that go beyond human capabilities so by investing in software upgrades, your company has the potential to not only save money but also identify areas that could benefit from restructuring.
Consider starting with the area of business that helps to create profits, sales. By providing your team with sales training software you are making one initial investment in the many opportunities for profit that will come from arming your staff with these tools.
The team you employ is the face of your business. They are the ones that your customers interact with almost exclusively, making the investment in their job satisfaction will show a strong ROI on your end.
Great customer service is a pivotal element of any business’s growth and success, or failure. Invest not only money into ways to increase and maintain job satisfaction, but also invest your time as a business owner to talk to your staff, and really get the pulse of what makes them want to work hard for you day in and day out.
Social media is a huge component of advertising in today’s world, and the great news is that social media is a cheap, if not completely free, way to promote your business.
Depending on your product and target market, investing in hiring a social media manager might be worth it. Individuals that hold this role are responsible for not only developing and executing your social media campaign, but they are also in charge of managing the associate accounts and the inquiries that come as a result of using these platforms.
By taking advantage of these free opportunities to start, you will be able to identify where you are getting the most responsiveness from and make any needed changes without having to continue to re-invest in advertising trials and errors.
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