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Reshali Balasubramaniam
April 24, 2019
Behavioural Psychology-Decision Making No Comments

How to Wisely Invest the First Profits of Your Company

Soon as the breakeven mark is crossed, entrepreneurs of new companies start getting excited. As the new profits roll in, there is a lot of anticipation springing about in the company. But most importantly, there are a lot of decisions to be made and investment of the pilot profits is definitely one of them. Here is a complete guide on how to wisely invest the first profits of your company –

Reinvesting

Reinvesting in a company is essentially using the profits to solidify certain revenue streams of the company. Such areas of investment include

  • Improving infrastructure
  • Buying or renting new equipment
  • Streamlining commercial processes
  • Devising new ways to improve customer experience

These are all appreciated tactics for the reason that they can increase profits drastically in the long run, enabling companies to expand their future business operations. One of the biggest companies in the world Amazon is known for its ruthless reinvestment strategies.

The secret to successful reinvesting is to have a comprehensive plan, not to essentially dedicate a large fraction of the profits into one avenue. Company reinvestment endeavors must at all times be in line with the company’s existing financial strategy.

Investing in Workforce

Another way of reinvesting is to invest the money earned into the team that helped make the money. This can come in the form of bonuses, increased salaries and new hires. Reinvesting profits in human resources projects such as training and coaching is also a great way of building an improved workforce. Creating an enhanced workforce in turn leads to-

  • Streamlining the business
  • Boosting productivity levels
  • Creating a unique form of company culture that attracts and rewards hard workers

Company heads must always recognize when they need help and seek out for it. After all, it is the employees who provide the essential technical skills and expertise needed to keep the organization’s operations running effectively. This is one of the most productive and positive ways of investing the first profits of a company.

Investing in Digital Marketing and SEO

For companies who are willing to see their profits increase over a short period of time and see a significant return on their investment in terms of improved company status – investing in Digital Marketing Companies and Search Engine Optimization plans is the best way to do it. Investing in these areas can drastically improve a company’s ranking on the Google’s Search Engine Result Pages – the number one for users to research and in many cases buy products and services. For the unexperienced, Search Engine Optimization can be extremely tricky at first. This task needs to be outsourced to experts who can make sure that the money that is being invested is earned back in the form of increased web traffic, lead generation and brand building.

The goal for a new company should always be to use time and clever investments to climb the ladders of success. Soon enough, new markets and industries will open up for the company to diversify their financial interests and solidify their business stature.

Summary

There is a lot of excitement revolving around the first profits of a company. However, an important decision needs to be made and that is where to invest the first profits. You can opt for avenues like digital marketing, workforce enhancement or reinvestment. Wise investment can indeed lead to future success.

Reshali Balasubramaniam

Head of HR, HR Counselor and adviser at https://work.lk/. Do you offer a Service? Signup for an account at work.lk

 

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