Making your first profits as a business is an exciting moment, and you’ll probably want to document the moment in some way – perhaps by saving your first dollar earned, but what should you do with the rest of your profits?
If you’re a relatively new small business, then the answer is easy – reinvest it! Where should you reinvest it? In any of the following:
In Company Improvements
Improving your small business by reinvesting your first profits in infrastructure and equipment is an excellent idea because if you do it right, it should directly lead to even more profits in the future.
Investing profits in marketing is another way of ensuring that your capital works for you by driving more sales your way.
In Your Employees
Using your profits to pay for training and development courses, ergonomic furniture, staff parties and anything else that you think will make your employees happier and improve staff productivity is sure to pay off. The happier your staff are, the more loyal, dedicated and hardworking they will be, so spending your money on them is never a bad idea.
In New Staff
Of course, if you’re a new business, you might not have that many employees on the payroll., So, why not use your profit to hire some new employees who can take some of the strain off and bring their own unique skills to your business?
In Your Website
If you want to be successful in business in 2018 and beyond, then you need to have an excellent web presence, and that means that investing your profits in your website, social media platforms and SEO campaigns will not see you wrong. The more traffic you can drive and the bigger the audience you can build, the better it will be for your company now, next year and even further down the line.
In a Savings Account
It’s always a good idea to have some liquid cash available, so that should you need to pay a supplier fast, for example, you will always have the cash ready and waiting, and you won’t need to use any of your lines of credit. So, you may as well make that cash work for you by putting it into an instant access savings account where you will earn a little interest.
In Stocks and Shares
If you have anything left over, then looking at the different types of stocks and shares that are out there and investing some of your profits in them, so that you can build up a bugger financial cushion is probably sensible. Just bear in mind stocks can go down as well as up and don’t put all your eggs in one basket, so to speak.
Invest your first profits in any of these things, and they are more likely to work in your favor. It might be tempting to use them for grander purposes, but building your small business into a bigger, better, even more, successful one should be your main focus right now.