Whenever you run a business, you have clear goals - you want to develop a product, market it effectively, make sales and bring in lots of revenue. No matter what line of work you're in, the general principles of business are more or less the same at the end of the day.
Ideally, you'd be able to take the money you make and invest it in driving even more growth in the future.
Moreover, you don't just want to rest on your laurels once you've brought in a hefty volume of sales. Ideally, you'd be able to take the money you'd made in your initial wave of business success and invest it in driving even more growth in the future.
Perhaps the best way to do this is by purchasing better technology. This should help accelerate future business processes and make it so growth comes easier down the road. In effect, you'll be turning your money into more money - a loop that should continue ad infinitum.
How can technology improve your business?
If you've got the working capital to spend, it makes sense to use it on purchasing high-tech resources that will help your company achieve at the next level. According to Entrepreneur Magazine, there are a few interesting ways in which technology can help:
- Better marketing: A marketing campaign is all about getting the word out quickly using many channels - email, mobile, social media and so on. Have you considered automating all of that so it's quick and easy?
- Smoother web design: Best practices in business website design are changing rapidly over the years. Is your approach up to date? If not, you may want to invest in some improvements to stay current.
- Better in-house computing: Faster CPUs can quickly add efficiency to an employee's day. Dual-display monitors can make it easier for people to multi-task and get a lot done. The more new tech you give your employees, the better.
All of the above require an initial investment, but the hope is that soon they'll have paid for themselves in the form of a more productive business.
Devising an investment plan
Making smart investments in business technology requires careful planning and smart decision-making. As the American Bar Association pointed out, it begins by thinking critically about what problem you're trying to solve. Is there a certain aspect of your business that's inefficient, or a department that's not getting the job done? Devoting better tech resources can help address these issues.
The other key question to ask is how much you're willing to spend on driving improvement. An entire batch of new computers for a new office might run you in the tens of thousands - do you have that kind of money to spend? This means not only looking at whether you have that equity on paper, but also checking that your cash flow is healthy enough to ensure quick payment to your suppliers. That's not always easy.
What if you still need more capital?
The problem with all this talk about technology investment is it's predicated upon having enough cash on hand to make deals. This is impossible if you aren't able to collect quickly on your company's accounts receivable and get money into your company coffers in a timely fashion.
This might sound difficult. But the good news is that with invoice finance on your side, you can get the cash you need up front to pay your expenses, rather than waiting for your clients to pay what they owe. Waiting on messy invoice situations to resolve can take weeks or even months; with invoice finance, you can instead collect within hours. When it comes to driving future improvements for your business, you have no time to waste.