Many entrepreneurs spend so much time and money getting their small businesses off the ground that they overlook areas that require ongoing investment. Once you’ve got your small business off the ground, it’s time to think of what your business needs for continued survival.
As your business grows, you should also consider ancillary investments that can help your business thrive. With those goals in mind, here’s a shortlist of the top investments that you should make as a small-business owner.
Maintaining Your Business
Running a small business profitably requires discipline, budgeting and cost management in order to maximize profit. However, if you squeeze your business too tightly, it can’t run efficiently. While unrestrained spending will sink your business, so too will denying your business what it needs to thrive. Depending on what type of business you run, this can mean anything from maintaining and replacing equipment when necessary to buying the freshest ingredients available or ensuring your marketing budget is big enough to get your name out there. Once you get your small business on its feet, you’ll have to continue investing to keep it running.
As an entrepreneur, you are actually the heart and soul of your small business. Without surviving (and even thriving) yourself, it will be hard to give your small business the fuel it needs to grow. Rather than trying to work 150 hours per week and throwing everything your body can physically stand into your business, be sure to step back from time to time to maintain your own health and sanity. For some entrepreneurs, this might mean daily (or at least weekly) exercise and fitness classes, or even massages. For others, it means making a point of taking breaks to meet with friends or family, or taking the occasional day off to recharge. Renewing and maintaining yourself as a human being is an investment that many entrepreneurs overlook, much to the detriment of their small businesses.
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Whether your small business is just getting off the ground or you’re a veteran in your industry, it’s hard for a company to reach its full potential without the help of outside experts. While you may very well be the best cook in 10 counties or the only auto mechanic for 100 miles, this doesn’t necessarily mean you know how to do your taxes, keep financial records or invest your profits. Accountants, financial advisors, consultants and other specialists can help take burdensome tasks off your plate and fine-tune your business to run as smoothly and profitably as possible, leaving you free to do what you do best.
Property or Goods and Services Related to Your Business
If you’re looking to take your business to the next level, buying property or goods and services related to your business can be a sound investment. For example, if you own and operate a bakery, buying the building next door and expanding your production can be a way to grow your business exponentially. If you provide roofing materials to developers, buying an ancillary business that installs roofs could be a way to double-dip with a single client. In other words, if you can identify companies that provide materials or services that dovetail with your core business, investing in them can be a great way to keep growing.
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High-Yield Savings Account
Most small businesses, especially profitable ones, have at least some level of excess cash floating around. Sometimes it comes in the form of accumulations for expenses like property tax or insurance, while other times it simply results from excess profits. No matter what the source, part of maximizing profit for your small business means investing any idle cash someplace that’s liquid, secure and earns interest. A high-yield savings account checks all of these boxes. Although rates remain low on a historical basis, online banks offer yields far above those you’re likely to receive from your local bank. Earning the most interest you can on your idle cash balances while still keeping them safe and liquid is an easy way to help your business earn all that it can. As a small-business owner, it’s an investment you shouldn’t overlook.
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