- Original Poster
- #1
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?
Where do you think the money is best spent?
£5.000, How would you spend it?
- Thread starter www.sitepal.co.uk
- Start date
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!
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!
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C
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
CALV
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B
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.
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.
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J
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.
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.
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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
The feel good factor is having a few grand sitting in the bank earning interest
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J
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.
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.
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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....
I would then take a small amount and try out a new marketing area to see if it gets me better results....
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