Is your business getting additional cash this year in the form of a tax refund? While it might be tempting to spend that money on a new T.V. or a vacation, it’s much wiser to consider your tax refund as profit that should be reinvested back into your business.
This is because a splurge purchase might cause short-term enjoyment, yet it won’t deliver the financial dividends that will allow your company to grow.
If you’re wondering where your business tax refund will have the biggest impact, we’ve got you covered. Here are five ways you can put that money to good use.
1. Buy or Lease New Equipment
Investing in new machinery, vehicles, or other business equipment can have a significant impact on your company’s efficiency and revenue. Even basic office equipment upgrades, such as new printers and copiers, can greatly improve your workflow and make your staff more productive.
The key is to only focus on equipment that will increase your business revenue when updated. For example, you might contemplate a larger T.V. screen for the conference room while the current one does its job just fine.
Alternatively, your computer may be slowing you down, leading you to twice as long to complete important tasks, which could result in delays. A new computer could improve productivity and enable you to do your job more efficiently.
2. Leverage New Software to Boost Efficiency
Outdated technology does more than slow down your business. It exposes you to cyber security concerns and can result in decreased production, efficiency, and profitability.
Therefore, another great option for your business tax refund is to invest in new software. When properly implemented, the right software has the ability to increase output, raise revenues, and automate time-consuming jobs.
Start by ensuring you’re running the latest operating system on company computers. Then, turn your attention toward your internet connection. Is it high-speed and reliable? Finally, consider how you can digitize and centralize your company’s documents if you haven’t already.
Going paperless in your business is not only efficient but completely necessary in this digital era. Digital documents are easier to keep, organize, retrieve, and process than paper records. As a result, your workers will be able to spend more time working and less time sifting through mountains of paper.
3. Grow your Online Presence
Your business’s online presence is crucial for reaching out to consumers, gaining useful insights, and growing your brand. Your social media profiles in particular are one of the first places potential customers learn about your company.
Therefore, if your online presence is lacking, your business will be at a significant disadvantage and could miss out on profitable opportunities.
A great way to reinvest your tax refund into your small business would be to hire social media assistance. This help might include setting up new social media profiles, increasing engagement, or even scheduling your posts. As a busy small business owner, you often don’t have time for these tasks, yet they can significantly help you to grow.
4. Run a Marketing Campaign
When implemented correctly, marketing campaigns can create some of the biggest growth in your company.
You can deliver your marketing content to your target audience using digital platforms such as:
- Google ads
- Social media ads
- Email campaigns
- Blogging
- Location-based online listings
- Coupon websites
Alternatively, it might make more sense for your small business to take advantage of print marketing, including:
- Local print advertisements
- Pamphlets and flyers
- In-store signage
- Magazine or newspaper advertisements
- Posters
Consider where your customers are most likely to learn about you and create a strategy that incorporates these marketing channels.
5. Combine the Refund with Additional Funding
Another way to put your small business’s tax refund to good use is to combine it with additional funding options, such as a merchant cash advance or a traditional business loan. This grants you access to a larger sum of money that you can reinvest back into your business for even faster growth. These additional funds could help you to develop a new product range, expand your business to a new location, or even hire a new department for your company, for example.
At Zinch, our products help you get the cash you need to improve your business and fast.
Contact us at (714) 500-6622 to learn more about your options. You could qualify for up to $250,000 in just 24 hours.
