Every business owner daily seeks opportunities to turn around the resources they have to earn more and ensure business sustainability. While saving is good, investing is better because it helps you hedge against inflation which has a more negative effect on saving. In our article titled “Investment Schemes you should consider as a Small Business in Nigeria” we explained some investment options that small business owners can consider.
In this article, we will discuss how investing should be done to achieve maximum returns for yourself as an entrepreneur and for your business.
- Reskill Yourself
The world of business changes every day. Trends come and go, shifts happen in your industry, and decisions are made daily that impact your political, economic, social, technological, environment and legal landscape. To understand these happenings and stay ahead of the curve, you need to improve your knowledge daily. To invest in yourself, below are some options you can explore.
- Read books, case studies and other relevant materials about your industry and those industries that impact yours.
- Improve your skills by taking additional training courses or certifications that will add to your pedigree.
- Be part of a community that improves your access to information and knowledge about happenings in your environment. Chambers of Commerce, Business Zones or Clubs, Associations, Hubs, etc. are avenues that business owners can leverage to gain more knowledge and access information.
- Attend webinars, conferences and appropriate events that help you learn and connect with others.
Beyond access to capital, access to information is also important for business owners and you can attain this by first gaining more knowledge.
- Retrain your Staff & Improve your External Relationships
Every business consists of various stakeholders that help to ensure the effective running of the business. They can either be internal (employees, managers or shareholders) or external (which include but is not limited to customers, suppliers, investors, communities, governments, and the society at large).
For your employees, you should make efforts to train and retrain them, while ensuring they invest for the future. By investing in your employees, you can improve productivity, boost performance, encourage innovation, improve morale and job satisfaction. Similarly, you should ensure the constant improvement of your relationship with external stakeholders, both existing and potential. Investing in others helps you grow relationships and increase your opportunities. Thus, you should take investing in others seriously.
- Re-invest for the future
Just as individuals put aside income for future use in banks and investment products, businesses can also do the same while investing in research and development initiatives that will enhance product review and revamp, platform updates and upgrades, process improvements and innovations, etc.
To get started with investing in banks or investment products, you should know your risk profile, be specific about your objectives/investment goals and how much you want to invest periodically for the short, medium, and long term. All this will help determine the appropriate investment product for your business. You can engage financial advisors to guide you and facilitate the setup and management of a portfolio that will enable you to get good returns from your investment.