Thursday, 24 October 2013

Business Budgeting: Five Places to Use Your Money with a Sure ROI

When you are creating a small business budget, you do not have to be an expert in business just to make the best financial decisions. It can be difficult when you are managing your own company’s finances, but when you take the emotions out of it and use your limited funds on areas that will deliver a return on investment, you can improve your chances of being successful. Here are five areas for which you should budget so that you can build your revenues as you grow your business.

Purchase Your Commercial Space Rather Than Leasing
When you lease the property you will be operating out of, you have nothing to show for the expense of the lease. You are paying for the landlord's mortgage expenses and will not be earning any equity. If your business is stable, you should consider finding a commercial space that you can purchase so that you build equity and increase your capital gains over time. If you ever need to expand, you can even consider renting the space out to another business for rental income.

Choosing the Best Funding Opportunity
You might think that a loan is more of an expense than a vehicle that will offer a return on investment, but if you choose the right type of loan product, the loan can lead to a return on investment when the funds are used to drive more profits. Make sure to consider the interest rate of the loan, the terms of the loan and the time frame so that you can choose the best loan product for your situation. If you can measure a return on the funds you borrow in revenues, then the financial move was well worth the interest expense.

Building a Noticeable and Original Brand
Investing in your brand is very important. Your brand is your image, and if you do not have a unique brand that you can build everything around, expanding and building a sizable customer base can be difficult. Paying for professional brand development is a wise use of money because it will deliver a return when you have a unified brand for packaging and marketing.

Driving in Prospects with Low Cost Marketing Tools
Marketing is essential when you are promoting the original brand that you have built. There are plenty of different ways to market a brand and communicate value, but you will need to choose marketing tactics that are affordable when your budget may not be very large for marketing. One effective way to reinforce your image and build brand recognition is to give away promotional products as free gifts to current and prospective customers. When you give away drinkware products for marketing, you can build trust with your audience in the process. Keep in mind that all promotional products can be imprinted or embroidered with your company name, logo and contact details – so they garner repeated advertising exposure.

Investing in Digital Marketing
It is very important to integrate your promotional product marketing with digital marketing tactics. With a professional website, social media marketing, a blog, or other digital marketing tactics, you can drive traffic to your place of business. Once you meet prospects, give away custom stainless steel water bottles or other promo products so that you can create good will among customers who will appreciate your thoughtful free gift.

Be sure to focus on return on investment whenever you are looking at your budget. By making financial moves that will ultimately raise revenues, you can grow your profits as you focus on lowering your out-of-pocket expenses.

Do you have have any questions or suggestions? Write in comment section.
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