Thanks to Black Friday, Cyber Monday, year-end sales, and shoppers hunting for holiday gifts, Q4 is often the most profitable time of year for businesses. Re-investing these seasonal earnings is one of the best ways to ensure the continued growth of your business while also helping prepare for the potential inconsistencies in sales at the start of a new year.
Here are 5 ideas for where you can re-invest your Q4 profits:
- Inventory: which products or services contribute most to your bottom line? Which seem to go out of stock most often? Investing in inventory is a great way to take preventative measures against going out of stock, relying on shipping times from suppliers, and taking advantage of current market rates.
- Marketing: The beginning of a new year is a great time to develop a new marketing plan. You could decide to launch a new social or digital ad campaign, or you could conduct market research or even a small sampling of trusted clients or customers to see where or how you can improve in the coming year.
- Employees: There are several ways you can invest in employees; from raising wages to expanding your workforce. If you found yourself overwhelmed with work, consider how you might be able to outsource or delegate tasks to a new employee. Or, consider giving your current employees a bonus using points from your rewards credit card. Losing employees can be costly; so it’s important to keep your current employees happy and recognize their efforts.
- Equipment: Did the busy season cause wear and tear on your equipment? Perhaps the laptop you’ve been using for years to run your business could use an upgrade. Consider how you might be able to replace, add to, or upgrade your equipment to make your business more efficient.
- Cash Buffer: Sometimes the best way to re-invest money is to not spend it at all. Consider setting aside some of your profits to start or contribute towards an emergency fund. Having funds to help cover unforeseen circumstances is a certain way to protect your business.
Can’t figure out where you should re-invest? Look at the most pressing issues and constantly analyze your business functions. Re-invest your money into areas of your business that need a boost!