The goal of any small business should be self-sustainability. That is, every business should strive to reach the point where it generates enough capital every month to fund its own operation. No loans, no advances –– no dipping into your savings to cover costs. If you’ve recently enjoyed a successful period and have some extra working funds to play with, you may not know exactly what to do with that money. Should you let it sit in the bank for a rainy day? Or should you try to expand aggressively instead? Weirdly enough, possessing an excess of capital can actually present a host of new issues to deal with. So how to best use your latest windfall? Here are four innovative ways you can grow your business with it:
Covering the Essentials
It may not be glamorous, but replacing old or outdated appliances around your workspace should be high on your list if you’ve got some extra funds to work with. Upgrading essential items like dishwashers for restaurants or a point of sale for pharmacies might not be the flashiest use of your money –– but your customers and your employees will appreciate it. Don’t try and get aggressive until you’ve shored up your current situation.
Promotions from Within
Sometimes the best investment for your company isn’t toward an item or software –– but rather in the people you know and trust. If you’ve had the pleasure of working with several employees you know can handle more, take this opportunity to promote them. Give them the chance to rise in your business and take on more responsibility. Chances are, you’ll see greater returns as a result.
More Ambitious Projects
Companies lacking a substantial cash flow will sometimes turn down projects that require significant funding to accomplish. However, if you’ve acquired the requisite financing, then now is the perfect time to try and up your game. Simply completing one bigger project than what you normally take on could elevate your business in more ways than one. Plus, you don’t have to break the bank to complete a major project. The more creative you can be, the better.
Whether you look to bring on new employees, or else open up an entire new branch elsewhere, finding the right moment to expand could prove the difference between thriving and merely surviving as a company. Remember though: while expanding your business presents numerous benefits, it will also be costly and could prove more difficult than first envisioned. So only go down this route if you’re assured of success. Otherwise that once healthy cash flow you enjoyed could dry up in an instant.