They say the most successful entrepreneurs are the ones who invest time and money in themselves. By expanding their equipment, wisdom and network, they can implement effective change in their business.

With the current UK economic challenges, taking money out of your business can be a worrying prospect; however, if you’re confident in why, where and when you’re investing, you’re more likely to see a strong ROI.

Identifying the Right Time to Invest

For start-ups, it’s easy to go full throttle, purchasing equipment and premises or hiring a huge team before you’ve hit your first sales target. Successful businesses consider the entire picture when choosing to invest, and with experience, have found the most profitable opportunities are when…

You’ve established loyal, returning clients

This confirms you’ve found a solid place in your market and established a key audience. If you have retainers, yearly contracts or regular sales, you’re in a good position to invest.

There’s a consistent influx of work

When you notice a steady or perhaps instant increase in sales for a product or service, you’ll want to maintain that pace. Putting money into areas such as marketing or customer services can keep momentum and you one step ahead of your competitors.

Managing demand

An upsurge of work requires an increase in support. This may include employees, equipment, delivery vans or the latest software. Not only to satisfy customers but also to ensure they don’t move to a competitor.

Hitting major milestones

When you first set up, you would have set a business plan, pinpointing key milestones such as sale targets, number of clients, amount of stores, etc. As you reach these milestones, you can look to the next goal and invest in the necessary resources to reach it.

Requiring specialist support

In business, you can’t do everything; it’s impossible, not to mention exhausting. Large corporate companies have numerous departments to stay afloat, each with a team of experts. To grow your business, you may need to hire an external specialist to develop your marketing, analytics, accounts or customer service. It’s often a wise investment and takes much time and stress off your shoulders.

Submitting your tax claims

It’s worthwhile regularly checking in with your accountant not only to stay up to date with your accounts and available cash flow but good accountants have an invested interest in your business. They’ll know what you want to achieve and recommend the best financial way to do so. One way is identifying tax-deductible purchases to save money and boost your business.

Areas You Can Invest In

Once you know the right time to invest, you must also understand where to inject that investment. The intention is to take your enterprise to the next level, to bring something new to the market, to drive more sales and attract loyal customers. There are different areas you can expand on, including:

• Self-development
• Marketing
• Team
• Networking
• Equipment

Speak with Financial Experts

The most important thing to note when looking at investment areas is not rushing into anything! Industries, shopping patterns and interest rates can alter dramatically, sometimes daily, so it’s vital to consider your options. Here at Busby Finance, we’ll work with you to understand the next step in your journey and source the best financial support to help you get there.