For those who love our business book shortlists, we’ve summarised the key investments you can make in your own business in this short article.
Once your business starts to become profitable, it is vital that you invest some of that money back into your company. But where do you invest? The truth is you can never make enough improvements to the efficiency and quality of your operations. Neglecting this could see your business stagnate and fall behind the competition. If you’re a business owner and you’re facing this predicament, the following are some essential investments you should make now so you can realize the maximum return.
Investing in your marketing department is by far one of the most important investments you can make. Even some of the best companies to invest in across the globe waste vast amounts of money on poor marketing campaigns, and this is often because they haven’t invested in the expertise necessary to create effective and engaging marketing campaigns. Use your money to consult experts or hire the best team possible to get the best results. Excellent marketing will improve your brand’s image and get you sales.
Technology will help to modernize and improve the efficiency of your operations. It can be one of the more costly investments to make, but the benefits are numerous and will, in the long term, improve your profit margins. If you have a fleet, you could consider installing GPS fleet tracking software to keep track when on the move. You can make improvements to the routes taken by your drivers and use the real-time data to provide training. If you run an accounting firm, you could look into the benefits of installing CRM software, collaboration tools and communication platforms. Whatever industry you’re in, there are always options out there to improve operations and streamline specific roles.
You need your employees to be as productive as possible and this means they need the training required to perform their roles to the best of their ability. Provide them with the best training you can afford and your business will reap the rewards. This will also have the effect of making your employees feel valued because you are willing to invest in them, which will inspire loyalty to your company. It’s an easy option to find free or cheap training, however the more you spend the better quality and the more your company will benefit.
You need to be able to protect your business during economic change, and the global pandemic has shown how essential it is to have money for emergencies. Many will have gone out of business because they didn’t have a safety net in place to deal with unexpected events. Take some of your money and put it aside. This is one of the best investments you can make, as you will have peace of mind that should similar circumstances arise again, you have some cash ready to deal with it.
There will be some tasks within your business operations that you don’t like doing, or they don’t require a full-time employee but still need doing. This is where you can invest in outsourcing some of your work which, in the long term, will save you money. The best economics books all agree that by outsourcing low-margin or inefficient activities and focusing your capital on your comparative advantage, you’ll achieve the highest profits.
Logistics is an area where you can outsource, especially if your target market is in a different area or country to your physical location. Order fulfilment can be outsourced and you will save on the costs of shipping and packaging. There are many other areas that are beneficial to outsource, so assess your operations and see where it can be utilized.