When you run a business, you have to be confident in making decisions. And that includes deciding where to put the money you make from your business profits. Spending wisely in the right places will bring you the dividends that you need to grow and strengthen your business. Here are five key areas you need to look at.business-profits

Invest in Your Employees

If you don’t invest in your employees, you will suffer the consequences later on down the line. Make sure you are paying them a competitive rate and providing them with a suitable benefits package. If you don’t, they will quickly move on, and your talent pool will be reduced. Hiring employees is one of the biggest expenses that all businesses have to suck up, but it is even more expensive when you are repeatedly hiring staff. The costs of training, time and hiring temporary workers for cover just aren’t an efficient way to spend money. Spend time and money in finding the right people for your business, those who are passionate about the industry and feel driven by your work culture. It’s not an easy job to find the right people but it’s the best ROI!

Buy A New Small Business

Successful business owners should always be looking for ways to expand. One of the best ways of doing so is to look for other firms that are complimentary to your own. You could approach the owners and see if they would be willing to sell, or you could even form a partnership. The benefits of either are clear. Not only will you have an instant expansion, but you will also be able to draw on new skills from a larger workforce. You will also open up new avenues and markets, which could lead to a wider overall success.

Another option is to invest a growth oriented business, investing gives us more opportunity in the long run. It may be hard for others but once they see its benefits, they will eventually like it and perhaps, get addicted to it. It does not matter how large or big you invest. Whether you want to start a new t-shirt business, As long as you are putting your profit to make another profit, that’s all that matters.

Invest in Bonds & Stocks

If you are investing your company profits in the long term, then you could also think about bonds and stocks. Bonds are a safer option. There are various bonds you can take out, but the safest is perhaps those that you get from governments. Effectively, you will be giving them money for a set rate of return over a number of years. Investing in stocks is riskier. You should perform a  lot of research before buying shares in any company, although, of course, there are safer bets. Coca Cola stocks, for example, boasts a highly stable track record over the long haul but the best idea is to evaluate what investments are good in the long-term. It is best to avoid short-term gains when using business profits as if things go wrong it could see you go out of business.

Real Estate is Always Golden

Buying real estate gives your business an opportunity to break into an entirely different market. People and businesses will always need places to reside and, as long as you are careful to invest in real estate in an area of strategic benefit, it is worth investing in. You don’t have to restrict yourself to this country, either. Although it is a little more complicated buying property abroad, you can sometimes get more for your money, especially when you buy in a developing country.


As you can see, there are many ways of investing your business profits to grow and strengthen your company. Making the right choice will give you new avenues of income to explore and, with a little luck, keep your business on track for success.

Image credit: Ken Teegardin