What takes priority when reinvesting in your business

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It can be tough to reinvest in your own business, let alone to decide where to invest that hard earned money. Clearing out the company bank account and lining your own pockets is satisfying, no one can dispute that. But it is short term thinking and if you are planning on staying in business for the long haul it is important to start to plan ahead and behave more methodically. No matter what you do to prevent it your equipment will inevitably break down in time, often at the most inconvenient of times. You can act in a reactionary manner to such occurences, dealing with the issues only when and if they come up. More strategic and seasoned entrepreneurs have learned to plan for expenses ahead of time and budget accordingly. Planning ahead also allows one to properly analyze the investment in order to make sure that it is the most efficient use of the free cash at that time. Often times, it can feel like you are pulling the thread of a sweater when trying to fix a single aspect of a business. You may intend only on replacing a old chair which consequently ends up making the crusty mirror behind it stand out. After you replace that mirror you realize how poor the lighting is, which leads you into some electrical issues that need immediate attention, and on and on from there. What seemed like a quick and inexpensive fix has now turned into a money pit and fast. If employees find out that you are making some upgrades, the feedback they are going to give you on what to fix next is just never going to end. When planning out your next project you always want to start with the essentials, those things that the business simply could not operate without. If there is anything that is towards the end of its life cycle then start shopping fir a replacement now so that you can try to find a great deal and prepare by setting aside a separate fund for it. Anything that is actively costing you money because it is outdated or even unfashionable is where you should focus next. That old chandelier may be an eyesore but I highly doubt you can quantify any actual loses from it. On the other hand, that 1980’s looking website with only 2 weird clip art pictures on it is something that you can track the visitors versus conversions on to conclusively show that it is actively losing you business.

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