business-growth Archives

How Can Investing Help Your Business Grow?

Growth is on the mind of every business owner, no matter the size of their company or how long they’ve been in business. And while most of them will actively and carefully consider different ways to improve their operations, they may omit to consider investing as a way to grow.

Let’s examine how investing can help your business grow and what you need to keep in mind if this is the route you decide to take.

The Benefits of Investing in Stocks

Investing in stocks can be very beneficial to your business in several different ways:

1. The average stock market return is around 10% per year, and it has been this high for nearly a century. This is higher than what you can expect from most other forms of investment.

2. The annual inflation rate stands at around 3% per year. When you compare it to the above-mentioned 10% in returns, you’ll notice that investing in stocks can help you protect yourself from inflation to a certain degree.

3. Dividends are also a great way to earn a passive income. While it may not be exceptionally high, it is still money you don’t have to work to earn, which you can further invest in your business.

4. Stocks are a liquid investment, and you can buy and sell them very easily. If you ever need a cash influx, you can obtain it by selling some of your stocks.

5. Investing can also help you connect with other people in your industry, as well as people who run other companies you can learn from or partner up with.

6. You can start small and work your way up. You don’t have to have a huge capital available, and you can get the ball rolling with as little as a couple of hundred dollars, or even less.

This is why a lot of individuals and businesses choose to invest in stocks. If they choose the right stocks, they get to see a steady income without having to spend a lot of time managing them.

The Risks of Investing in Stocks

Investing in stocks does come with some risks as well. Here’s what you should know before you consider it:

● The stock market is volatile. It declines 10% from its high every 11 months, around 20% every four years, and over 30% at least once in a decade. This means that you may end up losing money, if the crash occurs at a time when you’re actively investing.

● If you have a lot of debt to pay off, focus on that rather than on investing in stocks, as early repayment can have a higher return.

● You always need to have an emergency fund that will cover any unplanned expenses your business may face. This should not involve selling your stock.

● You will need to invest some time in researching stocks that are worth your attention. While blue chip stocks are often considered the best investment to make, you can also choose others that have a decent return and that are issued by credible companies. If you don’t have the time or can achieve more by investing it in your business, reconsider your stock market investments.

The risks of investing in stocks are usually outweighed by the benefits. As long as you can afford to lose some of your investment and you’re able to do your research, you can find the funds to grow your business.

Where to Find the Money to Invest

The question that naturally arises is where you will find the money to invest. Since this is a business investment (and not your personal one), you can (and should) consider taking the money out of the business, in a way.

You can, for example, choose to pay yourself a smaller salary or skip a couple of payments that you will use as an investment. Of course, this is only feasible if you can cover your personal expenses from what you’ve already earned or if there’s another family member who can take on the household expenses for a month or more.

You can also choose to lower your operating expenses. This may not always be an option, but you may be able to save some money in several ways. Letting people go is not the only way to do it, though, so don’t immediately start considering making a personnel cut.

You can change suppliers too, for example. Take a good long look at your expenses and figure out if there is any room to cut costs. If not, don’t worry; you can also take the profits and use them as an investment. This means you will again have to take away from what you may otherwise have taken home or refrain from investing the money back into the business, but it can be a viable option.

Understanding What You Want to Get out of It

Before you start investing, you should also carefully consider why you are doing it. Since the goal is to grow your business, set yourself a specific figure to make sure that you’re on track and that the investment is bringing you closer to your goals.

Make sure that the goal is not a very important one or one that you want to achieve in the next year. Investments take time to pay off. If you want to earn money to increase your ad spend for the next quarter, you will need to find the money elsewhere.

Maybe you want to find the fund to refurbish the office or branch out? Aim to set yourself a “nice to have” investment goal, one that you don’t need to achieve immediately to grow your business. As your stock portfolio grows, you can invest more, earn more, and ensure that some of your short-term goals are met as well.

Wrapping Up

Investing in stocks can be a great way to help your business grow. However, you’ll need to be prepared for a potential loss. Also, make sure to take stock market volatility into account when making the choice to generate additional funds for your company this way.

About The Author

Sarah is a life enjoyer, positivity seeker, and a curiosity enthusiast. She is passionate about an eco-friendly lifestyle and adores her cats. She is an avid reader who loves to travel when time allows.

How to Take Your Small Business to the Next Level

So you’ve founded a small business, and things are going well. You’re doing a good job running things; you’re making money, and everybody’s happy. Some people might be satisfied with that, but not you. You know that a successful small business is only the first step. The real trick is to turn that small business into a big business. You want to make more money, have more products, more locations, more employees. That’s a good thing. Ambition is what got you this far, and it’ll help you take your business to the next level. Here are a few tips to get you started on the next steps.

Customer Feedback is Key

You’ve heard it over and over – the customer is always right. As galling as that phrase might seem from a customer service standpoint, from a business standpoint, it’s absolutely correct. Customers know what they want, and they know what they’re willing to pay for. Listening to them can be a great way to figure out the most organic ways to start growing your business. You should be collecting customer feedback as often as you can. It’s almost like cheating – your customers will literally tell you exactly what they’d be willing to spend money on; all you have to do is listen and give them the opportunity. This gives you chances to grow your business while also refining the services you already provide. Plus, it strengthens the bond between you and your customer base. People love knowing you’re listening to their ideas, so don’t be afraid to play up the “customer demand” aspect of any new additions to your business model.

Think Early and Often About Financing

Nobody wants to rely on outside financing, but there will always be times when you need a little extra injection of cash. Sometimes things come up that we just can’t predict – Covid-19 just proved that to the whole business world. But extra cash can also be helpful to have on hand if you’re thinking about growing your business. Any growth requires money, and you might not have the cash available on hand to make it happen right away. Being prudent is always smart for your personal finances, but things are a little different in business. Timing is key, and if you have a great idea, you should always strike when the iron is hot. Don’t be afraid to borrow a little money if you’re confident that your idea will be able to help your business grow. You can always apply for an SBA loan from the government or secure a business line of credit. Whatever you end up doing, make sure you pay the loan back as soon as you can. You don’t want borrowed money hanging over your head for too long.

Invest in Marketing

How much are you currently spending on marketing? No matter what the figure is, the answer is pretty much always “not enough.” It may be often overlooked, as opposed to expanding your services or opening something new, but bumping your marketing is one of the best ways to start bringing in more income. Whether through traditional marketing methods such as yard signs to reach local consumers or creating a website to reach your global audience, marketing is an avenue that can take your business to new heights! And the more significant amount invested in it, the higher your yields usually turn out to be.

Pay particular attention to online marketing. Covid-19 has proven the effectiveness of an online-focused marketing plan, so make sure you’re keeping up in that arena. You can expand your main business all you want, but none of it will matter if you can’t bring in enough customers to support your growth. You need to always be reaching more and more people, and marketing is the only way to do that.

Personal Growth Leads to Business Growth

As the head of your business, it’s always going to be in your best interest to seek out and learn new things. The good news is that you’re already doing that. Even reading this article is an effort to pick up some new tips. But you can take that even further. Try to think about what your weak spots are. What are you constantly delegating? Is it marketing? Customer service? Are you a little iffy about the actual manufacturing process of your products? Identify what those weak spots are and get to work strengthening them. You don’t have to be an expert in all aspects of your business, but you should at least know what’s going on. When it comes to learning new skills, don’t be afraid to seek outside help. Conference speakers are experts in their specific fields, and there’s a lot you can learn from them if you try. Besides that, you can always try to find a mentor in your field, or just talk to your peers. Being a successful business owner requires enough humility to recognize that you can always be improving yourself.

Consider a Partnership

You don’t actually have to grow your business all by yourself. Smart, strategic partnerships can make a huge difference, and finding mutually beneficial ones is a great way to give your business a kickstart. Try to think of businesses that are adjacent to yours but not direct competitors. Are you a plumber? Get in touch with an electrician. Run an auto body shop? Form a partnership with a nearby dealership. Recommend your customers to your partner’s business, and they’ll do the same to you. You can even work together on jobs that require both skill sets. Remember that business is all about people, and making connections is never a bad thing. Even if the partnership doesn’t work out, that’s still another name you have in your Rolodex in case you ever need it.

Even with these tips, growing your small business is a difficult task. It’s going to take a lot of time and effort, and there will always be setbacks. The important thing is to keep plugging away at it, stay motivated, and have faith in your own vision. As long as you have those things, success will come eventually.

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9 Tips For Entrepreneurs For A Successful Business

Entrepreneurs are the driving force behind any country’s economy and development. They generate business, bring wealth, create jobs, and enhance the GDP of a nation.

Yet, being an entrepreneur means wearing many hats and taking on several duties. In this rapidly changing market, businesses need constant reinvention to adapt and grow. According to a survey, 92% of the ventures had to pitch new strategies to survive in the Post Covid-19 market.

Starting a venture is difficult, but scaling it is twice as hard. So, how can you be a successful entrepreneur?

Worry not! These insights from successful entrepreneurs will help you navigate the path to a successful business.

Make a Solid Business Plan

A business plan is when you brainstorm new ideas and materialize them on paper. Whether you are a startup or an established company, you always need a business plan to grow. If you are a young aspiring entrepreneur, start with finding your passion. Know your skills to pick something that motivates and energizes you. Be prepared to face criticism and failure, whatever may come.

There is no holy grail for a successful business, but a significant digital presence can do wonders. For instance, many entrepreneurs recommend a functional and user-friendly business app. You can hire an expert AngularJS App Development Company for business growth.

Be a Visionary

Only a visionary can be a successful entrepreneur. Thus, projecting the future goals for your venture is crucial.

● Make a board vision for where you want to see your company in the next ten years.

● Refine your ideas and lay the framework to achieve the set goals.

● Determine new market prospects for future investments.

● Distinguish your Strengths, Weaknesses, Opportunities, and Threats (SWOT).

● Analyze your customer activities and trends to your advantage.

Build a Strong Team

As it is rightly said, you are as strong as your team. Behind every successful venture, there is a team of competent and reliable people. Build a winning team by hiring the right talent — as it can make or break the team. Recruit people with different skill sets but align with your vision. It is always beneficial to have people who can multitask.

Leverage Marketing Tools

According to a survey, only 2 out of 3 businesses survive over three years. However, a study shows how three small businesses sustained beyond five years by implementing brilliant strategies — efficient marketing being one of them. They used cost-effective and creative digital marketing approaches for advertising, marketing, recruiting, and increasing brand awareness.

● Take advantage of all the marketing tools available — whether it is print media or digital.

● As we all know, sales are the lifeblood of any business. So, increasing sales will keep the business up and running.

● Focus on expanding your reach to target potential customers, thereby generating more revenue. Take advantage of free marketing tools like Google My Business, etc.

Manage Finances!

Setting up a new business always costs more than what you expected. In every business model, all decisions involve some risk. Hence, managing funds and reducing risk factors are a part of an entrepreneur’s life.

Allocate your funds wisely, set aside a fund for financial emergencies. Nobody knows what will happen tomorrow! So, get insurance and protect your venture from any accidents.

Be Voracious

Learning is an ongoing process. Be creative and seek new ideas — never standstill.

● Actively take part in seminars and attend business expos.

● Read biographies of successful business people of any field.

● Observe the success and failures of great achievers in your field and learn from their mistakes.

● Stay hungry for knowledge — learn about new technologies and how they can benefit you in expansion.

Evolve and Adapt with Time!

One thing about time — if you do not learn to adapt and evolve with changing time, you will be left behind. Every successful entrepreneur has business agility and the ability to adapt to new technology and methods to build an empire. The market needs are ever-changing — what works now may not work after a few years or even months.

Find your Guru

Having a mentor can be a great asset. It can be someone you trust — a family member, former college, or an entrepreneur itself. A little guidance and motivation when you are down can push you beyond your fears. In addition, a guru/mentor can shorten your learning curve by giving you valuable inputs that can positively impact your business.

Trust Your Instincts

Always have a go-getter attitude! Being a young entrepreneur, sometimes you get too comfortable with the data sheets and fear taking risks. But, remember that every decision you take will involve some risk; you should evaluate which ones to take, and more importantly, when. Sometimes, calling meetings, analyzing the pros and cons can delay action. So, learn to act fast and make decisions — if not, you can miss an excellent opportunity.

Final Thoughts

There is no perfect recipe for a thriving business. Success doesn’t come overnight — it requires a lot of nitty-gritty planning and hard work. You must have a unique idea, dedication, planning, and grit to achieve your goals. However, the above tips can propel you in the right direction and prepare you for challenges.

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About The Author

Lisa Dinh is a thorough and meticulous Content Analyst. She commits herself to continuous learning and focuses on sharing ideas and techniques learned from her experiences. And she is a passionate writer who loves writing about health and wellness. She writes in a concise manner so that the information is helpful for everyone.