£5.000, How would you spend it?

[www.sitepal.co.uk]

A friend of mine has asked me today how she should spent the money her business has made in the first year.

Where do you think the money is best spent?

[iKernal]

her business has only made 5,000 in the first year?? She work on it full time or part time??

[Coding Monkey]

She might have paid herself a large dividend at the end.

I would invest almost all of it (if not all) into advertising. It would be hard to comment what form without knowing her business.

[bwglaw]

Is it profit or turnover...? big difference!

She needs a development plan to plan how to develop the business further. Really depends what kind of business she is doing and £5000 will seem a lot to one business but not to another.

£5000 would not last long in my business because I am constantly re-investing and aim to keep my tax bill to an absolute minimum!

[confused]

either way, look at HOW that 5000 was made, and expand on that since you now have 5000 to invest in the business, so if it was made by selling 1000 items, maybe use it to buy more of these items to sell - thus increasing profit due to more sales. If I had 5000 "spare", I'd reckon on almost all of it going on advertising/marketing and some legal documents that I need.

CALV

[Bulldog Design]

I would pay off my debts :?

Seriously though, if the business has only just finished its first year, i dont think there would be any other feasible option than to re-invest in the business.

As to where the money should be invested, only someone on the inside of the business knows the right option imo.

[easyasit]

i know that by and large it takes years before you get any money from a business.
but do you think if it does start making a profit, u might at least be able to take back the money u invested? Esp if all startup costs have been ur own?

Al

[JoyDivision]

It shouldn't take years at all, depending on the business, I should be making profit from my business within the first two weeks of trading.

Ok the business itself is won't make a penny as the profits are my wages .

If I had £5000 to spend on my business I would spend £2k on careful advertising, spend £1k on a solid legal system and spend the rest on training.

[bwglaw]

Not many new businesses make a profit in their first year of trading and have a few debts. Don't forget 'working capital' which may be needed to take on new orders, especially if 'deposit collecting' is not common in their business.

The feel good factor is having a few grand sitting in the bank earning interest

[Magsite]

I get about £6-£7000 a year from my part time hobbies. Don't relly need the extra wage, just keep reinvesting it. One day it will be big enough to bypass my current income!

Lisa (I hope!)

[JoyDivision]

Well my business is simple, I have only spent about £300 to get it off the ground.

The business itself won't make any money but hopefully it will pay me some wages and if it does then its a sucess.

I guess that is the big difference between a company and being self employed. Although I do have ambitions to go LTD its too early to be even thinking about that.

[10 Yetis]

I would look at what areas of my past marketing had been the most successful and put the majority of the money back into that area, but this time see if i could get more efficient results to squeeze better value out of my campaign budget.

I would then take a small amount and try out a new marketing area to see if it gets me better results....

[Inzvestor]

Improving business process so that you could turn the £5000 into £50000 in a more productive way.

[winton50]

Buy a second hand GSXR1000

much more fun than a boring business!!!

:-)

[Mwebb]

How about buy a GSXR1000 trade price, ride it for a while, before you total it, and yourself, sell it for a profit!!

Worth a try i feel.

Upside: you get to ride a GSXR1000
Downside: You crash you die!!!

Second thought buy some advertising, possibly on MSN.

[Jayne]

I'd save it towards my campervan :D

Could be classed as business, know telling where I would end up networking with a mobile B&B :lol:

Jayne

[Bulldog Design]

Buy a second hand GSXR1000

much more fun than a boring business!!!

:-)

Now theres an idea!! :P

[winton50]

Upside: you get to ride a GSXR1000
Downside: You crash you die!!!



Better to burn out than fade away!!!!

:twisted: 8)