What Should I Do With My Profits?
If you run a successful business, you are profitable - hopefully very profitable! But, once you become profitable, what should you be doing with all of the profits? Here are 7 effective things that you can do with your profits:
1. Invest in the next product or service
To maintain your competitive edge, you must have a pipeline of new products and services to offer your customers.
2. Invest in staff training
An increase in staff training can lead to higher productivity, improved customer service, increased morale and improved employee retention.
3. Maintain a reserve
Having a cash reserve allows you to repond to problems, mistakes, or unforeseen issues that may come up.
4. Improve technology
Investing in technology and systems will keep your company highly automated, productive, and ahead of the competition.
5. Maintain and attract good employees
Use profits to reward great performance, provide better benefits, and build programs to attract great talent.
6. Reward the owner and stockholders
Reward the owner and stockholders for the risks they have taken.
Expanding your operation can increase both your revenues as well as bring in additional profits. Whatever you decide to do with the profits from your business, make sure that you are investing them wisely!