Naturally, the goal of any business leader is to achieve financial success. This can mean many things depending on the entrepreneur and their objectives, but it often starts with money left over at the end of every month. However, after achieving this goal, the issue then becomes what to do with the extra money.
Whether it’s reinvesting in the business or supplying your employees with new benefits or perks, there’s no one way to use excess profit, which is why the members of Young Entrepreneur Council share their top tips for leveraging extra money below. When your company has grown and you’ve seen a certain amount of success, consider these next steps for improving your business and your peace of mind.
Young Entrepreneur Council members discuss what entrepreneurs can do with their extra earnings every month.
Photos courtesy of the individual members.
1. Save Money First
There is no singular answer to this. In my mind, saving money for tough times comes first. Brands can divide this money and invest in their growth if they are properly covered for the coming six months. Otherwise, investing in assets would be a great idea. The usage of money depends on the growth stage of the brand. There are many areas for this, like growth and research and development. – Candice Georgiadis, Digital Day
2. Offer Employee Bonuses
Business leaders should use the extra money at the end of the month to give employees bonuses. Bonuses are a great way to show appreciation and motivate employees. Bonus payments also tend to be tax-efficient, making them a perfect choice for businesses looking to use their extra cash wisely. There are other uses for excess funds, but giving bonuses to employees is always a sound investment. – Michael Garrido, E-Valve Technologies
3. Upgrade Your Tools And Software
Once cash starts rolling in, it’s time to start thinking about upgrading your tools and software. Growing companies need to keep up with their growth, which often involves scaling up their existing resources and purchasing new products to create smoother workflows and better customer experiences. – Chris Christoff, MonsterInsights
4. Act On Promising New Ideas
A business life cycle has four stages: startup, growth, maturity and decline. When you’re at the second stage, you don’t know when your business will hit the point of maturity followed by a decline. So, it’s better not to keep all your eggs in one basket. If you’ve been working on some awesome ideas for new ventures, now is the time to put them into action. – Stephanie Wells, Formidable Forms
5. Expand Brand Awareness
You can use sales profits to expand brand awareness. For instance, running a few paid social media ad campaigns can help you reach people who’ve never heard of your brand. If you can connect with enough prospects, you can expect a further boost in sales, which will help you improve your business in other ways. – John Brackett, Smash Balloon LLC
6. Scale The Business Further
One of the best things a business leader can do with extra money is scale their business. This means improving processes and infrastructure so the business can handle more customers or clients. It can also mean investing in new technology, talent or equipment. By scaling the business, a leader can ensure that their company can grow and compete in the long term. – Pratik Chaskar, Spectra
7. Provide Continuing Education To Your Team
Consider investing the money in continuing education for your team. You are not only building your skills as a group, but you are also building loyalty within your teams and individuals. Some leaders feel that if they invest in this education then individuals will look elsewhere, but I have found that this is not the case. Invest in the future of your business through continuing education. – Matthew Capala, Alphametic
8. Invest In Assets And Valuable Commodities
Investment in assets and valuable commodities is a great option. It’s good to have an investment that’s growing over time without demanding anything in return. Such investments are a huge help when things are not going your way, and they can help you keep up with market uncertainties. – Jared Atchison, WPForms
