If you’re running your own business, eventually a time will come when you’ll need to invest some of your profits to keep it flourishing. This situation will be critical for the further growth of your company, and for you, it may seem like you’re stepping out of your comfort zone, and taking a huge risk.
But then again, the greatest risk is not taking any risks at all, depriving yourself and your business of the opportunity to develop, the opportunity an investment could bring.
This decision will be much easier if you consider all the benefits it will bring to you and your business, so we’ll share five good reasons why investing is important.
Your business will grow
Your every investment, if done right, can make your business grow. Whether you’re considering putting some money into hiring new staff or purchasing software which will provide your customers timely and reliable customer service, you’ll be able to do more and give more quality. You can focus on growing your customer base, which is crucial for your business, and invest in thorough research of your customers. This way, you will be able to provide them with great and personalized customer service, which will bring you more loyal customers, and more revenue. Or you can outsource some of your tasks, such as your digital marketing strategy, which will potentially attract more customers, boosting your further growth. Opportunities are endless if you take your chances.
You (and others) will take your business seriously
If your business still isn’t making the desired profits, it’s no reason to treat it as a side hustle or a hobby. Once you begin taking your business for what it really is,a business, you will start taking it seriously, and all the others around you will get the same impression. When considering your first or a new investment, try to be highly professional about it, and put it in a business plan. This is of crucial importance if you’re thinking about financing it partly from external resources and considering affordable no security business loans. It will help you put things into the right perspective, minimize the risks attached, and be your guide when things get rough.
There are certain minimal investments you can make, which will make your business seem more professional. Just think of what all the other companies do to make a strong impression on their prospective clients. Business cards may seem like a waste of money in the days of digital communication, but your business partners and clients will consider your company more reliable and trustworthy if you have them. Same goes for having a website – social media can do wonders when reaching out for new customers, but if your prospective clients can’t find your website address when they google you, they’ll think that something is out of place.
Only when you know you’re putting your hard-earned money into developing your business, you’ll have the feeling of truly owning this process, and being responsible for its outcome.
You will feel less stressed
Stress can be detrimental to your well-being. In fact, this is proven scientifically – a study by Harvard-trained psychologist Robert Epstein found that 25% of our happiness depends on how well we manage stress, and being proactive is a part of the solution.
Being a small business owner often leads to taking too many tasks on yourself – handling finances, sales, HR, solving various issues with equipment and operations. Your mind ends up constantly overwhelmed with worries, while too many sleepless nights can make you feel tired, anxious and less productive. Apart from learning how to take care of yourself and reduce your stress, there is a high chance your next investment will boost your happiness level as it can set you free from tasks you are not an expert in, or which you can hardly fit into your busy schedule.
You can focus on what you’re best at
A proper investment will make it possible for you to focus on tasks you know how to handle well, or take pleasure in doing. Everybody has their own field of expertise, things they are exceptionally good at. Starting your own business and having to solve by yourself all the issues which come along the way doesn’t change this fact. Studies show that small business owners spend as much as 40% of their working hours on tasks that don’t generate profit. Just imagine the possible growth of your business if you were only able to aim your attention to crucial concerns, and delegate all the rest.
One of your first investments should be hiring more staff, who will focus on what they’re skilled in so that you can go on claiming your victories in what you are best at.
You can achieve your personal goals
Whether it’s a six-months visit to Europe, buying a house, or sending your kids to college, you’re more likely to achieve your personal financial goals if you opt for investing your surplus money in your business, instead of putting it to your savings account.
In order to make your investments work for you, you need to do a bit of personal financial planning too. This means setting your personal goals and prioritizing them, as well as creating an action plan on when and how you are likely to achieve them. Also, you need to learn how to keep track of your spending habits as well as to manage your debts in order to prevent your hard-earned money going to waste. Building your personal investment portfolio and deciding on how much money you are able to invest to make your business grow, as well as which other investment opportunities you should follow to raise the odds of living a life you desire.
You will save time
Eventually, your investments will be crucial for securing your better work and life balance. Surely, when running your own business, you are ready to put some extra hours in growing your company, but if it lasts too long, your private life is going to suffer. A study has shown that we already take our business home with us. In fact, only 74% of our work is done during our working hours, while the rest is finished during our private hours. With such statistics on your mind, just imagine how much time you spend working, and how much time you will save if you had enough staff to delegate some tasks to.
“When you invest, you are buying a day that you don’t have to work,” is a famous quote by AyaLaraya, investment advocate, and a host of a Filipino TV show “Pesos and Sense,” covering topics on achieving financial independence and investment. And it sums the point up, perfectly.
If you’re a business owner, you may hardly find any time at all to think about investing in yourself and your company. Still, it’s essential to fit investment planning into your schedule, as only by considering your chances for growth can you get new ideas, gain new skills, and prevent a possible burn-out.