Congratulations on making a profit in your first year! It’s an exciting time for your business, and we sincerely hope you’ve popped the champagne to celebrate all your hard work you've done. So, frame that first dollar, have a glass of bubbly and then sit down and concentrate.
You may have earned your first dollar, but that doesn't mean that you’re anywhere close to knowing what to do with the rest of them! Your new profit is an exciting time for your business, and there are several things that you could be doing with that first one to really build your business. If you’re confused about where you can invest after the first year, check out some of our ideas below:
Almost all startups spend their very first profits by reinvesting it back into the company to make improvements, and there is no exception to this rule. You need to have a sound strategy for this. You need to get together with your head leadership team to ensure that you reinvest in the right places.
Ideally, you’ve not been without a sound marketing strategy for the first year of your business. However, this doesn't mean that you cannot make improvements upon it. It’s a good idea to seek some advice from outside agencies like Ignite Digital so that you can be sure that you are managing your content and your social media strategies in the right way. It’s okay if you’re not all that experienced; that’s what outsourcing is for!
You only made a profit with your business because of the help that your team gave you. Giving back to them with a bonus, new incentives or even additional options for them to grow into their goals is a sound way to part with the money from your first year in business.
Not literally, but you do need to consider how you can use some of your first year’s profits to hire a business coach. You may have found the first year a struggle, and that’s okay, but you do need to know where you can go next. Sometimes, this requires a little expertise outside of your comfort zone.
Your company should have a website, and now you have the chance to inject a little more cash within it, you should go for it. You’ll be able to reach the top of the search engine results pages if you trust in an outside agency to get you there, too.
Investing your first year of profits in your business is important. Paying yourself back and allowing for additional breathing space by injecting more cash elsewhere is an excellent way to reinvest your profits. Take some time to consider it all, though, and congratulations again on your major business breakthrough. Many businesses fail in their first twelve months, and you didn't. Keep up the momentum for year 2 - you won’t regret it!