There are a few necessary business investments that provide huge benefits to the company moving forward. And there isn’t really any excuse since money that is reinvested into a business is tax deductible. From new equipment to employee training, here are some suggestions.
Finding the Best Talent
One of the most expensive tasks for any business, in terms of time and money, is finding the right employees. As such, it helps to use some of your profits to ensure you find the best people for the jobs you need filling. It is clear that paying more is the key to hiring top talent, according to Checkr’s new study. The budget should contribute to extra time for drafting job descriptions, advertising the role, and hiring professional interviewers to help with the key final stages.
Updated Tech and Equipment
Technology moves at a rapid pace, and not upgrading will ensure you lose out to competitors who use the latest advantages. Imagine if your competitor uses AI to rapidly assist with customer service while your services are based solely on phone contact. Or some of your equipment is deemed useless as it isn’t compatible with a newer version of a required operating system. Computers, software, and machinery must all be upgraded as and when it’s necessary.
Marketing Business Reinvestments
It’s almost impossible to compete these days without a marketing strategy. Print and traditional marketing will help. But most people use online gateways for interaction these days. Therefore, digital marketing should be a priority. Professionals such as Laurel Mintz of Elevate My Brand recommend that around 12% to 20% of projected revenue should be invested in your marketing efforts. Digital marketing agencies can help with SEO, PPC, and getting your SMB noticed.
Employee Training and Education
Hiring employees is only the start, and your business relies on a solid and reliable employee structure. It can be challenging to find a reliable hierarchy that works well and even harder to maintain. One of the key areas of reinvestment should, therefore, be your employees. Training and education can permeate your business and make it easier to retain top talent. Is there anyone better to fill critical roles than the people who understand the company inside and out?
A Business Emergency Fund
No business is invulnerable to emergencies. Anything can happen at any time, and recent events such as COVID have proven that fact. Many SMBs had to close because there was no emergency cash to continue paying bills, which didn’t stop just because the world did. It is recommended that you have around two to three months’ worth of operating costs stored in an emergency fund. This helps ensure your company can weather a storm when one hits.
Recruitment for the best employees possible is one of the best business reinvestments to make. It also helps to allocate up to 20% of projected revenue for any marketing efforts. And around three months’ worth of operating costs will help ensure you can stay open during a crisis.