The end of the year may be drawing to a close, and your business may be one of the ones shutting down for the holidays, but in the background, the cogs of your business will keep on turning. There’s still an element of uncertainty in the air fueled by economic and even pandemic factors that are leaving businesses questioning how they’ll keep those cogs turning. That’s why it’s now more important than ever to grow an asset portfolio in the form of investments.
We all have assets. If you have a car, a TV, or even a cell phone, you own assets. Business assets, however, are on a slightly bigger scale. They’re there so that your business has multiple avenues for income and so that money isn’t tied up in a bank – any financial advisor will tell you to invest your money, be it personal or business.
Below, we will focus on essential business investments you can make by the end of the year to make 2022 a better financial year.
Invest In Stocks Or Cryptocurrency
If you haven’t heard about the hype of investing in stocks or cryptocurrency, you must have been sitting under a rock. Trading has become immensely popular, with millions of people investing small amounts to secure big financial gains. For a business, it makes sense to have stock or even cryptocurrency as a financial asset – and you don’t have to do it yourself.
Most people tend to go through a broker to invest – because brokers are experts at what they do, and not everyone is an expert at the stock market, for example. They understand the best indicators, the various trading patterns, and what to trade when – you could say it mitigates the risk somewhat.
It’s a natural progression to start trading stocks as a business. Most business tycoons have their money tied up in the stock market. Take Elon Musk, for example. He’s due to pay a horrendous tax bill of over $11 billion and says he needs to sell a large portion of his stock investment because that’s where his money is tied up. He doesn’t have a cash salary – all of his money is in the market.
Start An Employee Or Customer Incentive Scheme
Starting an employee or customer incentive scheme can come back to you in riches – it pays to look after your customers and employees. For customers, they’re naturally your source of income. A customer incentives scheme helps build better relationships, improve customer retention, and improve referrals into your company.
It has been proven that it’s far more expensive to pay for the onboarding process – which would involve marketing, discounts, and manpower spent responding to emails – than it is to retain loyal customers. Having a customer loyalty program helps to keep those loyal customers within reach.
For your employees – a reward program creates better workers. Employees are far more likely to perform at a higher level if they know they’re getting something at the end of it. Not only that, it improves the working relationship ten-fold. Studies show that only 45% of people are happy in their current jobs – employee reward programs could change that.
Invest In Better Technology
Technology is at the forefront of developing and rapidly evolving businesses around the world. We’re constantly pushing for technology that helps solve problems – and scientists and technology experts worldwide are delivering. Artificial intelligence (AI) is the perfect example of technology your business should consider investing in.
AI is one of the most advanced technologies of our time – recently, MIT scientists have made a computer that can detect objects which has never been possible before. For a business, however, the applications of AI lean more towards marketing, finance, and streamlining processes. One way a lot of brands are using AI is to find new customers. AI can scour through databases, websites, and indexes to compile a list of details ready for you to send the onboarding email.
Before AI technology came onto the market, this was an arduous task that a team of people would spend hours doing – AI can do it in minutes.
Consider High-Value Business Purchases
High-value purchases on the business card become a no-brainer when you start earning big money. Business expenses are tax-deductible, and with the price of tax going up each year, it’s becoming increasingly difficult for businesses making over a certain amount to pay their tax bill without feeling the effects.
Referring back to Elon Musk – although it’s slightly extreme – he’s facing his mammoth tax bill because of the tax charge increase. Smaller businesses won’t face such an extreme bill, but it is a good idea to look into high-value purchases that are tax-deductible, which could mean you’d pay a sizable amount less at the end of the tax year. Think about company cars, office appliances, and even business trips.
Running a business and understanding taxes, profits, deductibles, and everything else in-between can be confusing. Knowing where to put your money when depends on the markets, economic and political factors, and the current state of your business finances, but the ideas above are a great investment starting point.