Learn how to invest in your future and your business

Learn how to invest in your future and your business

By mick | March 22, 2023

Click this link to listen to the full podcast on this topic - https://pod.fo/e/159606

When you're starting a business, it's easy to focus on the day-to-day tasks that keep your company running. But if you want to grow your business and reach new heights, then you need to think about how you can invest in yourself and your company.

Start by looking at your business plan and vision

If it's not written down, write it down. Make sure that your vision statement is specific enough to be useful in helping you make decisions about what course of action to take in the future. For example, if your goal is simply "make more money," then how can you use this information? You could go out and buy a lottery ticket or ask the universe for help via meditation—but neither approach would be particularly effective! If your goal is "earn $1 million over the next five years," however, then this provides a clearer direction for how to move forward as an entrepreneur: come up with a business idea that will help you earn $1 million over five years; pitch this idea to investors (or self-fund); develop relationships with partners who can help make all these things happen; and so on.

Examine your goals.

The first step to achieving your goals is to make sure you’re clear about what they are.

  1. What do you want?
  2. How do you get there?

You should set SMART goals, which stand for specific, measurable, achievable, realistic, and time-bound. SMART goals should also be broken down into smaller chunks that can be accomplished on a regular basis and celebrated when completed (and rewarded with something special).

Look at your current financial situation.

If you want to make informed decisions about your business, it's important that you understand where your money is coming from and where it goes. We recommend reviewing your last two years' financial statements so that you can get a clear picture of your current cash position.

Your cash flow is how much money is coming in the door and how much is left through expenses.

Cash flow is the difference between income and expenses. It's more than just profit—it's the lifeblood of a business, and it tells you whether your business continues to run smoothly or if you're on shaky ground.
When you're starting out, cash flow can be difficult to manage because there are many unknowns in terms of what your company will need in terms of funding, marketing, and other resources. As a result, it's essential for new companies to have some sort of plan for managing their cash flows through these uncertain times before they get too far behind in paying bills and other expenses.

It's important to understand the difference between profits and cash flow.

Profit is money left over after you subtract expenses from revenue. Cash flow is a better indicator of whether or not your business is making money because it takes into account the cash that flows into and out of your business. For example, if you have $1 million in revenue for the month, but you spend $1 million on inventory and payroll during that same period, then your profit will be zero. However, if you have $1 million in sales with no costs associated with those sales (maybe they were all online), then your cash flow would be positive by $1 million!

Spend money where it will make a difference.

This isn't just about spending more money but on the right things. You can study hard and work hard to make your business successful, but if you spend all of your money on marketing that doesn't work, then what's the point? Spend time working with experts who know how to do this for you so that when you focus on creating content for social media or advertising in magazines, it has been tested and proven to be effective. You don't want to waste any of your hard-earned money!

Generating positive cash flow can be done in a variety of ways beyond simply cutting expenses.

The first, and most obvious way to generate positive cash flow is to increase sales. Sales can be increased by introducing new products or services to existing customers, increasing the price of existing products or services, and/or marketing your company more aggressively.
One way to improve efficiency is by cutting costs through outsourcing tasks that can be performed more efficiently by someone else. For example, if you're an accountant and hire a bookkeeper for a few hours per week at $25 per hour, that's $125 in savings each week (assuming you don't have time yourself). That would add up to an extra $6,000 every year!

Generating positive cash flow can be done in a variety of ways beyond simply cutting expenses.

The first step is understanding your customers. You need to know what they want, how they feel about the product or service, and what it is about them that makes them unique. Then you can provide an experience that meets their needs and shows that you truly understand them as a person.
Once you've done this, the next step is providing a great product or service along with great customer service. By giving customers high-quality services and products, including ones tailored specifically for them, you'll increase the likelihood of repeat business—and thus increase sales!

Your business needs to grow in order for it to prosper.

The first step to growing your business is investing in yourself.

If you want to increase revenue and profit, increase the customer base, market share, and sales, and expansion of operations then you need to grow your company.

To grow a business successfully it is important that all staff are on board with the vision, mission, and long-term goals of the company. It is also important that employees understand what is expected of them personally in order to contribute towards achieving company objectives.

As you can see, there are many different ways to invest in your future and your business. If you want to start investing, the first thing we recommend doing is setting up an investment account with a brokerage firm. Once you're ready to start investing, consider some of the options listed above so that you can figure out what's right for your situation!

Want more resources to help build your building or trades-based business? Join us in the ToolShed - https://bit.ly/JoinTheToolshed