Guide To Growth – 5 Clever Ways To Reinvest Profits Into Your Business

When your business enjoys its first year of clear profits, it can be easy to get carried away and blow the extra funds on treats and luxuries. Though these may be well-deserved, reinvesting the profits into your business will deliver far greater long-term rewards. The best part is, you may not need to wait too long to realize those benefits. 

With clever reinvestment choices, you can start reaping the rewards right away. To help you make an informed decision, check out the following five reinvestment options that will pay off now and in the future: 

1. Capital upgrades

Perhaps you could use some new, snazzy media walls to improve your success at trade shows, or maybe a new CNC machine will enhance your product’s quality while slashing your production time. The specifics will be as unique as your business, but the outcome is much the same – invest in capital upgrades, and you’re securing the future success of your enterprise.  

2. Learning 

This applies to yourself and any employees you may have. No matter how skilled you are, there’s always room for development. Investing your profits in educational and professional development opportunities will see your non-tangible assets increase in value, revealing new opportunities for meaningful growth in your business.

Whether you want to brush up on your business management knowledge, send your marketing guru to coding boot camp, or bring in a reputable sales professional to teach your team some new skills, reinvesting your profits in human capital will pay off exponentially down the road.


3. Marketing

No matter how amazing your product or service, your business won’t go anywhere if it doesn’t reach its target audience. For this reason, it’s never a bad idea to invest in marketing. Depending on the size of your business, your current needs, and the amount you can afford to spend, this could come in the form of hiring an in-house marketing team or outsourcing to a reputable digital marketing agency. Each of these avenues comes with its own unique benefits, so be sure to do your research before making an investment. 

4. Outsource the tasks you loathe

This is likely the investment option that will bring the biggest smile to your face. Once your business is turning a decent profit, one of the best things you can do as the owner is to relinquish some of the control. Whether it’s managing payroll, handling customer inquiries, or writing articles for the company blog, choose your most dreaded tasks and start outsourcing them to freelancers or independent agencies. 

The time and mental bandwidth you gain from freeing yourself of the work you find tedious can be used on pursuits that will add more value to your business. In this way, you’ll get to enjoy your workdays more while also boosting the growth of your enterprise. 

5. An emergency fund (with interest)

So many business owners assume their initial capital investment will be all they need, especially once they’ve started turning a profit. However, there’s an infinite number of situations that can demand instant access to cash. 

If you don’t have a contingency fund, you could miss out on good deals with suppliers or find yourself unable to cover an unexpected bill or fine. With this in mind, it’s worth holding some of your profits in reserve in a savings account that will offer you interest while it’s safely tucked away. 

Hopefully, these reinvestment options have gotten you excited about what the future might bring if you hold off on that luxury vacation or vehicle upgrade and instead channel your profits back into your business. 


Lynne Huysamen

Mommy to a pigeon pair, blogger and online marketer. Lover of chocolate, good books and buckets of coffee.

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