Financial success starts with making the right investment decisions. There are opportunities out there––some are obvious, and others might not look like opportunities right now. Your first instinct as a small business owner might be to take a defensive posture and ride out the rising prices and volatile stock market. You could play it extra safe, or you could consider one of these ways to invest in your small business’ growth.
1. Convert to a hybrid or remote business model
The effectiveness of hybrid and remote business models was proven during the 2020 pandemic. Many of the businesses that converted to fully remote have chosen not to go back to renting traditional brick-and-mortar office space. Fixed costs are lower, the tools and technology are there to make it work, and your employees would likely prefer it.
2. Build a better online presence
This goes together with operating by remote. A better online presence means more than just putting up a new website. Your social media pages probably need a facelift. Effective content marketing could increase sales. Making it easier for customers to buy online is a good way to expand your reach. Investing in these improvements could significantly increase your revenue.
3. Outsource administrative tasks
You may be paying more people than you need for administrative tasks that can be automated or outsourced. Or, you may be spending too much valuable time doing these tasks yourself. Profitability is always higher when you can run lean, especially when you and your in-house staff are able to focus on tasks that help make your business money.
4. Take a class and learn something new
The metaverse is expected to be one of the most lucrative business opportunities of the 21st century. Do you know anything about it? Have you considered using blockchain technology for your business processes? What do you know about social media or content marketing? Maybe you want to become a more effective public speaker. Taking a class or two to learn about these innovations and marketing strategies could give you better ideas for the future of your company. Think of it as investing in yourself.
5. Buy some low-cost real estate
Some might argue with this because property values are high and interest rates are going up right now. That doesn’t mean there aren’t decent investment opportunities out there. Commercial real estate prices are dropping with increased vacancy rates. Residential income properties are always good earners if you can find the right deal. Plus, if you do decide to maintain a hybrid work schedule, a small office could be perfect.
6. Beef up your stock portfolio
Stock market traders live by the motto, “Buy low and sell high.” Prices aren’t going to drop much lower than they are right now, even if we go into recession. If you’re not comfortable doing this yourself, you can hire a financial advisor. The market has been difficult to predict this year and you could use the help. Investing in stocks and ETFs is still profitable.
7. Invest in a disaster recovery plan
We’re using “disaster recovery plan” as a general term here because disasters come in all shapes and sizes. There’s the obvious concern about weather or flood damage, then there’s the threat of disaster from a data hack or malware. Your disaster recovery plan should begin with a danger assessment. Follow that up with developing and implementing safeguards, including setting aside emergency funds to stay prepared for the worst case scenario. Your business checking account may allow you to organize your finances into sub-accounts so your emergency funds remain separate from money for day-to-day operations.
8. Hire a good accountant
The tax code is changing once again in 2023. A good accountant is one of the best investments you can make to stave off audits and avoid potential penalties for incorrect tax filings. They also help with financial planning to take advantage of tax deductions and new federal tax credits that are now available to your small business. With Bluevine Business Checking, you can invite your accountant to securely access your account with their own dedicated login––to help save time and avoid sharing passwords.
The bottom line: Make your money work for you
We hope that this short list has given you some new ideas about how to invest as a small business owner. Truth is, it can be beneficial not to sit on your money. It’s natural in this economic climate to be defensive and want to hold funds in reserve. But, while that might be a safe strategy, it’s unlikely to be a profitable one. Invest in yourself, your team, and your business so you can set yourself up for growth.
