#9 Things to Invest in When Starting a Business

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9 Things to Invest in When Starting a Business

When starting a business, everything you do comes with some risk. But while it comes with the territory, you can also mitigate risk. Carefully calculating every decision, including what and where to invest your capital in, can help you improve your chances of succeeding in the long term. Here are 9 things you’ll want to invest in when you start a business:

Top Talent

A more skilled workforce can streamline your business by improving productivity levels and building a company culture that attracts more talented individuals. Invest capital towards human resource programs, including continuing education assistance and mentorship. As each team member becomes more skilled and experienced, your business also reaps the rewards.

Self-Improvement

Just as you would want to ensure the professional growth of your employees, you should also pay attention to your own self-growth. Find ways and tools that can give you more expertise in the subject matter you work with daily. Many businesses are spearheaded by a founder that is good at innovating but not so much at managing people or vice versa.

Branding Help

Your business’ success or failure is directly tied to your branding efforts. Brands, like Mcdonald’s, Microsoft, Chevron, and Ford, have all risen to their position and have maintained their claim of market share partly because people know about them. When building your brand, get expert help. For instance, brand ambassador agencies can help you manage large corporate events that generate quality leads and create brand awareness.

Legal Fees and Protections

Legal fees, mainly a business license and other related licenses, are unavoidable when starting a business. In order to start operating and providing products/services to your customers, you’ll need to apply for permits, purchase a trademark or copyright, or research any patent breaches to avoid an expensive lawsuit. You may also need to seek legal counsel to help you shape your business’s legal structure and write up partnership agreements.

Housing

Whether you’re leasing an office or renting storefront space, a location makes your business more official. First-time entrepreneurs may find that leasing is a more cost-effective option to house your operations. Under housing costs, you should also consider investing in a professional interior designer to help you spruce up the space.

Inventory/Raw Materials

Whether you’re a software company or a mom-and-pop shop, you need products to sell to consumers. And to get those finished products that are ready to be sold to consumers, you need to invest money in procuring the raw materials for it or ordering inventory from a manufacturer. If your business also incorporates a distribution strategy, you’ll also be shelling out money for every step of the logistics process, including storing, packing, and shipping.

Promotional Items

Although this section might be a subcategory of branding, it’s important enough to separate it into its own section. Basic promotional items, like business cards, storefront signage, brochures, and flyers, are also a worthwhile investment that helps get your business name out there.

Website

In this day and age, a business website is a must-have. Your customers expect to find you online when they type your name in a web browser. If you don’t have an online presence, it can be deemed as disreputable. Get a website up and running, even if it’s just a static webpage that details your contact information and products/services. You can expect to invest anywhere between $500 to $5,000 for a professionally-made website.

Research and Development

Last but certainly not least is your business’s R&D. In order to dominate your industry or niche, you want to have the best product/service. Continuous R&D can be capital-intensive, whether it’s custom manufacturing new product molds to conducting large market surveys and interviews. R&D is also a good way to expand your current product offering. It can help you find new ways to profit from your current customer base and to grow to new underserved niches.

Conclusion

Now that you have a better idea of where to invest in starting and building your business, the next step is figuring out how much of your resources to devote towards each item. Regardless, you’ll find that your business will benefit from investing in any of these areas.

by Hannah Boothe

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