Business owners have to keep one eye on the external threats, and one eye on the internal challenges. No CEO should ever put their entire focus on what is going on in the outside world. When you scrutinize your internal shortcomings, you’re better able to meet the challenges that the external market poses. Competitive pricing, marketing trends, consumer confidence, stocks and bonds etc, are all the things you need to keep abreast of. A CEO must take pleasure in reading company reports just as much as the financial newspapers. Whenever you attend business events, exhibitions and speeches, there’s always a tremendous amount of focus on business investment. Experts from different fields all talk about how important it is for businesses to invest in other businesses, gain investors, bonds, securities and more. But there’s little advice out there for entrepreneurs who want to know what the best way to go about investing some of the company profits into the company itself? Here are some ways you can reinvest in the business.
Product improvements = R&D
Doubt and self-confidence issues are a plague in the entrepreneurial and small business world. People who have never even run a business let alone own one, are now doing both. So for someone who is new on the block, being surrounded by all the large businesses can be daunting. However you’ll slowly learn to only second guess yourself from time to time and the simplest answer is sometimes the right answer. Take a look at your current product line and or services. Cast your mind back to when the projects for these were in full swing. Right towards the end you had thoughts about what you wish you could have done better. Maybe you looked at your products and were a little disappointed in a particular area. Therefore you already know where to invest company profits so that your business can thrive the next time.
Invest in product research. The research and development department will be in charge of this. So your brightest and best minds will be in charge of making the improvements you want. Where will your money go? For product improvements to be made successfully and with good reason you need to do a few things.
Sanction a report on how the overall product could be improved for the latest version. Highlight the area of your disappointment.
Theoretically compare how this newly improved product would compete with competitors in the same market.
There’s never a time when your marketing strategies can’t get better, more polished and even evolve. Consumers are accessing different kinds of media, viewing and listening to different kinds of content. Now more than ever, it's your job to integrate your business into all the mediums there are. Investing in your marketing department is definitely going to be worth your while. However, lets understand first that the marketing industry is perhaps the more fluid of all. It's constantly changing, and what drives this change is technology. So in a sense, technology is dictating what kind of marketing strategies will be the most effective in the present day and in the future.
If you haven’t already, you should seek to add these new kinds of roles into your business. A YouTube content creation team is something you must seek to create. Hire a small but effective team which will be able to create all types of content. Whether it be trailers for an upcoming product and services, filming advertisement in-house, documenting your day to day life inside the business, making short introductory videos on the various departments and employees, conducting interviews with you and relevant c-suite employees, live streaming product launches, press conferences and events, etc. There’s so much a media team can do for you in your marketing department, it's an investment that will keep bearing fruits for many years to come. As you have probably guessed it, sometimes when seeking to invest in your business you must first invest in people.
A wing and a prayer often comes in handy but it's no way to grow. Entrepreneurs don’t have to be educated to start a business, you don’t need to be the A+ student in business class to make your dream come true of owning and running your own business. Many people in fact dropped out of college and higher learning to go their own way, such as Bill Gates and Elon Musk. They are the exception to the rule and although it should be encouraged, many people just can’t make their business succeed for too long without some kind of proper knowledge. But if you are going to invest in your business, how about starting off with yourself? There are plenty of educational options out there for someone who wants to learn about business in a more in depth way. You can do all kinds of courses in accounting, marketing, industry specializing etc.
But the bread and butter of every business is management. From management, everything else is kept in check and in order. If you don’t have the time to go back to college in person, then consider your options such as Aston Online's msc in business and management. It's 100% done online, it's a distance learning degree. The course will teach you how to create and read business plans, financial reports, develop marketing and pricing strategies, as well as understanding the strategies and processes to innovation. Everything from problem-solving, decision-making to critical analysis and presentation skills are taught in the degree. Using your newfound knowledge, you’ll be able to grasp the technical challenges of not just running a business day to day, but making big plans on growth and expansion.
The number one priority a CEO is not making unique and brilliant business plans. It's not making sure that the finances of the business are correct. No, the first obligation and responsibility you have is to give your employees everything they need to work at their best. Without employees, you’ll be a one man army. It's not something that you want to do and it's never going to get you where you want to be. But what can you give employees to allow them to work better? Firstly the work environment is crucial to the morale and prestige of the business. A dark dingy, grey office doesn’t exactly scream success now does it?
Save up your profits, be prudent in the way you do this so you can move your business to a professional commercial office. No more gloomy working conditions, bring some much-needed professionalism to your headquarters. Employees should like walking into the office where they work all day. Consider the amount of office space you require for your employee numbers in square-feet, consider the location of the business relative to customers, clients and overseas interests and if you can afford it within reason.
Investing externally is quite common among businesses. An entity such as a company needs to create multiple safety nets, which is why investing in stocks, hard assets and securities is well recommended. However, investing in yourself goes a long way. Being able to manage different scenarios that the life of a CEO throws at you is vital to your success. Invest in your product line, seek to improve on areas that you saw as a disappointment even before the previous product was officially launched.
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