When to Invest In Your Business|
Even during slow economic times, successful business owners never stop investing in their organizations. When times are tight, enhancing efficiency with minimal spending may be top of mind. But as the economy begins to improve — as it appears to be doing now — making larger monetary investments may be the real key to growth. Whether it’s for new equipment, facilities, talent or training, making the decision to invest in your business requires careful planning and precise timing.
So is now the right time to invest in your business? Answering the following questions may help you decide.
1. Are your long-term goals well-defined? Knowing where you want your business to be in five years — and how you plan to get there — will help guide your investment decision. For example, if you want to sell the company within five years, you may want to focus your improvements on attributes attractive to potential buyers, such as a strong infrastructure or brand. When drafting your goals, make sure they are specific, measurable, actionable, realistic and time-based (SMART).
2. Do you have a clear picture of your current position? A sustainable business in today’s market gives you a solid foundation for growth. In addition to looking at your company’s financials, consider your marketing program and sales department — will they adequately support your goals? Your current strengths and weaknesses can also be helpful in determining when and where to invest.
3. Are you in touch with your customers? Just as you’ve adjusted throughout the Great Recession, so have your customers. Do your products and services still meet their needs and desires? Do your marketing efforts fit their buying patterns? What do customers like and dislike about what you’re doing? An investment in your business could help you keep pace with shifting customer expectations.
4. Do you understand your market and competitors? Market research can reveal both current and potential competition in your industry, and highlight what your company needs to do to maintain a competitive advantage.
5. Can you estimate the benefits of the investment? Do you have processes in place to track the success of your investment? Lenders will want to know your projected return on investment, and you’ll want to be able to gauge progress and adjust as necessary.
The Time Is Now
If the time is right to invest in your business, let us be part of your growth strategy. A business banking expert can help determine what type of financing may be right for you, and potentially customize a loan for your specific needs and goals. To learn more, call 800-544-0545 or visit AmericanRiverBank.com .