Investing Your Company’s Profits: How to Keep Making More Money

business entrepeneur

What did you with the first dollar that you earned from your business? There’s a tradition among businesses wherein owners keep the first dollar of the very first sale. While keeping that tradition is okay, the real question is what you are going to do with the first real profit you get. Keep that dollar in a treasure chest or in the office drawer. But for the rest of the money, how about investing it and make it grow further?

Business Improvement

Small businesses usually spend their first profit on their business. Whether it’s upgrading the point-of-sale system or bringing more oomph to the aesthetics of the store, the primary goal is to reinvest the money into the business. What are the improvements that your business needs? Is it in the infrastructure? How about the processes and systems? What about security? Maybe you need to look for an armed property security guard agency to further protect your business assets.

These are valuable strategies that will allow your business to run for a long time. They will improve customer service and increase profits in the long run. If you have plans to expand your business, this is also a good strategy.


Many startups make the mistake of not investing in their business marketing from the get-go. You don’t actually have to wait to make your first dollar to invest in marketing. You can use your profits to improve your marketing techniques. Perhaps, go full blast into digital marketing. You can start a blog and invest in performance metrics to get to know your audience more. Your business will go a long way if you put money into digital marketing.

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To improve the productivity of the workforce, you need to invest in training, workshops, seminars, and conferences. That will not only attract the right skilled people to your business, but it will also allow you to retain your best employees. It is so easy to steal talented employees from companies when there is no support from the management. Reinvest your company’s profits in human resources initiatives that will improve your employees’ skills.

Hire and Outsource

Most of the time, entrepreneurs are guilty of having to do everything in the company—from planning to marketing to selling to customer support. This is when you need all the help you can get. If you have the money already, you can hire the right people to run certain departments and units in your business. Learn to delegate tasks so that the operations of your business can run smoothly.

If you don’t like to build an in-house marketing team, for example, you can outsource certain tasks. Many companies offer such services for a fee. In the long run, the partnerships you make with these outsourcing companies will be the core of your business operations.


Do you have a website? If you do not have a website, this is the best time to do it. If you have the money, create a website now and use search engine optimization (SEO) on every facet of the website. SEO is your company’s best marketing offense. It is tricky at times, but you’ll eventually get the hang of it or you can hire someone to do it for you. For example, hiring an SEO writer will do wonders for your business. It can reach more markets and expand your presence online.

Cash Buffer

One of the best ways to use your company’s profits is to create a cash buffer. When your business encounters problems, it is best to have enough money to handle the financial problems. Most insurance companies will cover natural disasters and catastrophes, but it’s still good to have enough money in the bank to pay for the repairs and replacements that the insurance might not shoulder.

Stock Market

If you have enough money to invest in the stock market, do it. You have to attend seminars and conferences to know about day trading and long-term investments. The thing about stock markets is that it can become more profitable if you know where to put your money. Investing in blue-chip companies is the safer route, but the returns will take a long time. You can engage in day trading, but the risks are higher. Learning how to read the stock market is not easy, but it’s a highly profitable venture when you get the hang of it.

Many business owners choose return on investment over reinvesting to make more profit. While it is important to get your capital back, more critical is finding ways to put it back in your business while it is still small. The more risk you put into your business, the bigger and better the profits are going to be.


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