7 Business Investment Examples for Your Money Now

Making Smart Business Investments Is Key To Success

Today, I want to talk about 7 top business investment examples.

Because knowing how to invest in your own business is very important. Why so?

Since smart business investments deliver the following good outcomes:

  • Growing revenue streams
  • Higher profit margins
  • Increased customer satisfaction
  • Growth and development of employees

Would you like to improve your business in one or more of these areas?

If you answered yes. Then read on.

Because it’s time to dive into today’s topic: investing in your own business.

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Disclosure: At no cost to you, I may get commissions for purchases made through links in this post.

7 Best Business Investment Examples

Investment goals for small businesses. Or, medium to large size businesses too.

Here is a list of 7 smart business investment areas. That every owner or manager should consider.

  1. Company and brand reputation
  2. Customer touchpoints
  3. Productivity improvements
  4. Organic expansion
  5. Employee training and development
  6. Utilization of technology
  7. Acquisitions of other businesses

I will use this list as a guide for the next sections of this article. Then, address how to make your business’s investments a success.

But, before I address either of these areas. Let’s be clear on today’s topic…

What Is A Business Investment?

Here is the definition of business investment. It is spending by privately held or publicly traded businesses. And nonprofit entities too.

The purpose of the spending is to sustain or improve an entity’s prospects. With either financial gains, important non-financial business benefits, or both.

With that definition of business investments taken care of. Let’s move on to the 7 great business investment examples…

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1. Company And Brand Reputation

Every company has a brand reputation. Or, brand image. Including yours.

It may be within the industry you operate. Throughout the state in which you do business. And, or throughout your customer base.

While some companies, but not all. Also, develop products and promote them under a brand name.

Procter and Gamble is a good example. They have dozens of branded products. For example, Tide detergents and Bounty paper towels.

Business Investment Examples: Your Brand

Improving brand reputation should be part of a firm’s marketing efforts. And more generally, part of every external interaction your company engages in.

The interactions can be by you. One of your employees. Or, one of your products or services.

So, any investment in people or processes. Can benefit your company’s brand reputation.

But more directly, the best business investment example here is money spent on marketing. To promote either your company. Or, its products.

Then, collect data on market share. It is one way to measure brand performance.

The greater your market share. The better your brand. And its image.

Next, is our second business investment example. It relates directly to your customers.

2. Customer Touch Points

Customer interactions with your products and services are critical. They will make or break the sustainability of your business.

Here are 2 areas to consider making investments in your company. As they relate to customer touchpoints…

Business Investment Examples: On-Time Delivery

Your customers want your product or service for a reason. Whether it solves a problem. Or fills a need in their supply chain.

Therefore, few things will disappoint your customers more than this. Not delivering at the agreed-upon time.

Thus, it’s critical to deliver whatever it is you do. And do it, ON TIME!

So, break down your customer order process into steps. From beginning to end.

See where it fails. Know where the bottlenecks are.

Then make business investments. To address your on-time delivery issues.

Otherwise, your customers will find someone else to solve their problems. Or, a better partner to integrate with their supply chain.

But what’s worse than delivering late? It is delivering poor quality.

Quality is the next area ready for investing in your own business…

Smart Business Investments: Product Or Service Quality

Analyze your product returns. And listen to your customers when they have a complaint about your quality.

Why? It’s simple.

Because poor quality will kill your business. So, understand your product and service quality issues.

And if you have a quality problem. Make the investments and set short-term business goals to solve those problems.

Here are a couple of ways to go about it…

Business Investments In Quality Assurance

Trackback to get at the root cause. Of your poor quality.

Then make good business investments. To solve the causes of your quality issues.

Solving quality problems at their source? This means investing in quality assurance.

Business Investments In Quality Control

Solving quality problems after they occur. But before they reach the customer. Represents business investment in quality control.

Both areas (assurance and control) are important. But the best companies make business investments in quality assurance. In other words, stopping quality problems before they happen.

Here is a brief recap so far

So, you have your customers taken care of. By delivering a quality product. And doing so on time.

All of which serve to enhance your company’s brand reputation.

Investments in these areas will result in a higher market share. And increasing revenues.

But so far, the investments in your business are focused externally. Which is very important.

Next, let’s flip up the hood on your company. And take a look inside.

Since the next business investment example is about getting better at what you do…

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3. Productivity Improvements

Look for great investments for your business processes. Those are things your business and your employees do every day.

Business Investment Example: Internal Processes

Leave no stone unturned. Because every area of your company has business processes.

Including research, product development, sales, marketing, production, accounting, finance, and human resources.

Business Investment Example: Outsourcing

And don’t forget about business process outsourcing. Sometimes it’s more cost-effective to pay another company. That’s an expert in a specific field.

Rather than trying to do it yourself. Whatever “it” is.

A good place to start is your accounting and financial management.

Get Better, Faster, And More Profitable

Finally, your investments in business productivity should result in this. Being better, faster, or both at what you do.

In addition, these investments will reduce expenses. And increase your company’s profit margins.

Think of it this way…

Being better at what you do. Means doing more with fewer resources.

While being faster. Means getting the most out of the resources that you already have in place.

Want to know more about how to invest business profits? Then read on about growing your business.

4. Organic Expansion

When I talk about organic expansion. Also called organic growth.

What I mean is increasing revenues. Through your company’s internal investments and resources.

As contrasted with growing through external means. For example, mergers and acquisitions.

There are numerous smart business investment examples. That falls into the area of organic expansion opportunities.

Here are a few for your consideration…

Business Investment Option: Developing New Customers

Ask yourself this question. What is the best way to attract new customers?

Then make a business investment to do so.

Because new customers will sustain your business. And grow revenues over the long run.

Smart Business Investments: Expanding To A New Geographic Area

Take what you sell today. And target a new geographic market.

If you do business in town A. Then expand to town B.

Do you operate only in the state of Nevada right now?

Then do your research. Because the state next door has one of the largest populations in the country.

So, expand across the border to the west. Into California, traditionally good for startup businesses.

From these examples. I’m sure you get the idea.

Here’s another business investment example. That targets organic growth.

Top Business Investments: Go To Market Through A New Channel

Identify all the possible channels through which your products and services can be sold. And delivered to your customers.

Then access one or more marketing channels that you have not yet utilized.

For example, consider online marketing. That drives traffic to your website. With order-taking capabilities.

Business Investment Example: Penetrate A New Demographic

See if you can modify and extend your product lines. And market them to a new segment of the population.

Must-Have Business Investments: Developing New Products Or Services

Make a business investment in your research and development capabilities. Then bring a new product or service to market.

Okay. That’s enough about investing in organic growth and expansion. Let’s talk about another important business investment example…

5. Employee Training and Development

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In one way or another, everything gets done through people. Including yourself.

Better people mean a better business. So be sure to target smart business investments at your most valuable resource. Specifically, your employee’s career development goals.

Some examples include:

The long-term business goal is to develop an organization that thinks, learns, and grows. As a collective unit.

To take advantage of opportunities when they present themselves. And solve problems when they come up.

Next, investing in your own company means looking into this area…

6. Technology Utilization

Just like everything flows through your people.  These days, everything has a technological element.

And in some way or another. Every company is a technology company.

So look at your current technology. And make the investments to improve it. Or, utilize it better.

And investigate if there are applications that your company does not use today. That would make for a good business investment.

To do so, tap into a younger, well-educated, and tech-savvy population. And add their skills to your workforce.

Next, is my last example of smart business investment options.

7. Acquisitions Of Other Businesses

Everything we have discussed thus far can be done internally. By you or your existing organization.

But let’s be honest. These business investments take time.

The time to investigate, finance, and implement. To reap the benefits of investing in your own business.

So, to accelerate the process, sometimes it makes more sense to acquire another company. That is accomplished in the area you would like to invest in.

It’s the classic “buy or build decision”. On one hand, you can invest in resources and processes to build a better business.

On the other hand, you can invest in another company. That has done what you are trying to do already.

Acquisitions can speed up your progress. On the other hand, acquiring other businesses has its challenges too.

Okay. That wraps up my discussion of 7 good business investment examples for your money now.

But, I also promised to cover how to make your business investments successful.

Let’s cover that next. Then I will wrap up.

How To Make Smart Business Investments And Make Them Successful

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Investing in your own business should not be done in a vacuum. No way. It should be done as part of a comprehensive thought process.

About where your business is at today. And where you want it to be in the next 3-5 years.

Besides, financial resources and human resources. They are in limited supply.

Thus, you can’t take on every business investment area that I just discussed. At least not all at the same time.

So, here’s how to go about making smart business investments. That will result in success.

Put A Business Plan In Place

Investing in your own business means having a business plan.

A business plan is important. It helps establish priorities for your business investments.

And provides a financial plan. Because investments in your business require money.

Thus, each investment option should include:

  • Market analysis & opportunity
  • Competitive analysis
  • Sales forecast
  • Operational plan
  • Investment deliverables
  • Financial projections
  • Internal and external financing needs

Then layer your proposed business investments. On top of your existing base business. To create an entire picture of where your business is headed.

Ensure Financing Is Available For Your Business Investments

There are 3 primary sources of financing for your business investments.

Internally generated profits. Use the positive cash flows from your business.

Debt financing. Debt investment is a business loan. In exchange for a promise to pay interest on that loan. And repay the loan balance at a later date.

Equity financing. Equity investment in a business is the receipt of cash. In exchange for part ownership in the entity.

As a business owner, you may choose to provide debt or equity financing by investing with your personal funds.

Or, you may choose to source the funds externally. From outsiders who desire to make debt or equity investments in your business. If so, make sure your finance department is fully engaged in this activity.

Next, with a business plan in place. Including your chosen business investments. And financing for those investments is secured.

It’s now time to execute. And bring your business investments to life. Here’s how to go about it.

Set Goals To Execute Your Business Investments

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First of all, a goal is the desired outcome. In this case, the outcome is related to completing new investments in your company. Then reaping the benefits.

Furthermore, your business goals should be time-based.

So, determine what needs to be accomplished. To complete the selected investments in your business. And set time-bound deadlines for each step along the way.

Finally, determine who is responsible. And assign accountability for each goal.

Thus, you and your employees are responsible for attaining the right business goals. Those goals support completing new investments in your own company. And the investments tie into the company’s overall business plan.

Monitor Results Of Your Business Investments

As part of your business planning. Each investment has expected results. And projected financial outcomes.

So, set up the mechanisms necessary. To measure the success of your business investments.

Okay now. That’s all I have for today. Allow me to wrap up with a summary.

Summary: 7 Smart Business Investment Examples

Want to know how to invest in your business?

First of all, look at these 7 areas. They are ripe for good business investment options.

  1. Company and brand reputation
  2. Customer touchpoints
  3. Productivity improvements
  4. Organic expansion
  5. Employee training and development
  6. Utilization of technology
  7. Acquisitions of other businesses

Furthermore, invest for success by following these steps:

  • Put a business plan in place
  • Ensure financing is available
  • Set goals
  • Monitor results

Finally, enjoy the benefits of investing in your own business. They are:

  • Growing revenue streams
  • Higher profit margins
  • Increased customer satisfaction
  • Growth and development of employees

Now you know how to invest business cash. Good luck no matter what you choose to do.

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conclusions: benefits of investing in your own business

Author Bio: Tom Scott founded the consulting and coaching firm Dividends Diversify, LLC. He leverages his expertise and decades of experience in goal setting, relocation assistance, and investing for long-term wealth to help clients reach their full potential.