How to Invest in Your Business in the Next 365 days (2024)

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Jenna Kutcher

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November 24, 2017

How to Invest in Your Business in the Next 365 days (1)

I know you’re thinking, it’s not even January yet Jenna and you’re talking about goal setting? Yes, I am and think you should be too. So where will I be investing in my business in the next 365 days? Let’s walk you through exactly where I’ll be investing and how I go about goal setting in my own business in the hopes that it will help inspire you too. You ready? Let’s dive in.

1. Clarify what you want.

The best way to begin to identify your goals for next year is to start with a brain dump.Writing down your goals makes them real and make it more likely that you will take action on them. I actually do this pretty regularly, not just with the big picture items on my list but my week to week projects as well. I find getting everything out of my head and on paper make things feel more manageable and I’m less overwhelmed and stressed by what I want to accomplish. I would challenge you to not judge this list and just get every thought and idea no matter how little or big and scary it might be. We will spend time in the next few steps refining and diving deeper into them.

2. Refine to make specific and measurable

Listen to your gut when reading through your goals and be honest with yourself about what’s important and needs to be a priority. Pay attention to the ones that light you up and deserve your time and energy. Too often we are vague about our goals which in turn makes us less likely to achieve.

With every single goal, you need to be able to confidently say “Yes, I did this” or “No, I did not.” So it needs to be more specific than “make more money” or “take more time off.” Instead, you could specifically say “I am going to book 20 weddings” or “I will take the month of March off as a sabbatical.”

3. Put them on the calendar

I get it, it’s fun to dream, but too often as entrepreneurs it stops there and I want to make sure you adopt the idea that goal setting should be on-going and not just a practice for January 1st. Break your goals up into smaller, actionable steps and put them on your calendar. Most importantly, honor these tasks and deadlines.

As our own boss, it can be easier to keep promises to others while our own goals and dreams take a back seat. Make sure every goal you have has a date of completion. Without a date, you’ll likely keep pushing it to the bottom of your to-do list, never to get done. Be aggressive with this but also have grace for yourself that dates can be adjusted. Even your wildest dream goals can come to fruition if you take the time to put the action steps down to achieve them.

4. Be honest about your fears

Too many people don’t acknowledge the fears they have in their business, heck, we frankly suck at dreaming because we’re too focused on what can go wrong. What would it look like if you believed everything would go right for once? Simply acknowledging these fears and then letting them go can be crazy powerful. When you recognize that something terrifies you, you free yourself up to start thinking about how it’s going to feel when you accomplish your goal or the steps you’d take it you had to face that fear. What would it look like if your fear actually happened? Usually, it’s not as scary as we make it up to be in our head and bringing our fears into light takes the power away from them.

5. Invest in your dreams

When you write down the goals it will help you see the finish line even when things get tough and you undoubtedly run into troubles. You’ll better be able to gauge if you should say yes or no to all of the opportunities that land in your lap and allow you to stay focused and set boundaries to protect your vision and goals. And my favorite part, it will enable you to see and celebrate your progress when you accomplish them.

My top goal for the next 365 days?On-going learning. This looks like investing in courses, education, and training for both me and my team. It looks like investing in a mastermind and running one myself. It looks like reading business books and connecting with other like-minded entrepreneurs. An investment in yourself as an entrepreneur is always a good bet and one that is at the top of my list for the next 365 days. Those investments that get my heart pumping and make me face a decision, “Am I going to really go for this” have proven to be the best investments I’ve ever made as an entrepreneur.

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How to Invest in Your Business in the Next 365 days (2024)

FAQs

How to invest into your own business? ›

Some ways to fund a business include:
  1. Debt investing.
  2. Equity investing.
  3. Angel investors.
  4. Second mortgages.
  5. Venture capitalists.
  6. Business credit cards.
  7. Home equity lines of credit.
  8. Small Business Administration Loans (SBA Loans)

How to invest small business profits? ›

In no particular order, here are eight ways to reinvest your business profits.
  1. Marketing. Turning a profit means you've done something right. ...
  2. Research and development. ...
  3. Inventory. ...
  4. Continuing education. ...
  5. Business emergency fund. ...
  6. Employees. ...
  7. Software. ...
  8. Equipment.
Apr 22, 2024

How much to invest in a small business? ›

How much startup funding you need depends on many factors, such as your industry, the products or services or the store location. The cheapest businesses to start may cost as little as $12,000 initially, but other businesses like restaurants can run from $400,000 or more.

Should I invest in a small business? ›

If you don't want to launch a business yourself, you can still benefit from their role in the economy by investing in them. Investing in small businesses is an excellent way to support the growth of entrepreneurs and diversify your investment portfolio.

What is it called when you put money into your own business? ›

Many business owners list it as equity. This means the funds are a contribution and that the business does not have to write up a business loan agreement or repay the loan. The transaction is simply an investment made in the business in return for increased equity.

How to self-fund your business? ›

Self-financing means funding your business with your own money. It could come from personal savings, a home equity loan, liquidating your investments or even business credit cards. The key is that you are using your own money to finance your business rather than borrowing from outside sources.

How do I reinvest into my business? ›

  1. Related: Strategic planning for your small business: What it is and how to do it. Make sure you can identify your profits. ...
  2. Sock some away for a rainy day. ...
  3. Invest in your marketing. ...
  4. Invest in your employees. ...
  5. Invest in your infrastructure. ...
  6. Invest in an expedited debt retirement.

How much profit should a small business make a year? ›

What's a good profit margin for a small business? Although profit margin varies by industry, 7 to 10% is a healthy profit margin for most small businesses. Some companies, like retail and food, can be financially stable with lower profit margin because they have naturally high overhead.

How to pay yourself as a business owner? ›

Business owners can pay themselves through a draw, a salary, or a combination method:
  1. A draw is a direct payment from the business to yourself.
  2. A salary goes through the payroll process and taxes are withheld.
  3. A combination method means you take part of your income as salary and part of it as a draw or distribution.
Oct 27, 2023

How much money should a small business have in a bank account? ›

There's no one-size-fits-all rule, but generally, small businesses are advised to set aside 3-6 months of expenses in cash reserves. Exactly how much that is for you can vary, depending on a few factors: Monthly expenses.

Is $5,000 enough to start investing? ›

The possibilities widen at the $5,000 level. You have more options for mutual funds, individual company shares, index funds, IRAs, and for investing in real estate. While $5,000 isn't enough to purchase property or even to make a down payment, it's enough to get a stake in real estate in other ways.

How much should a small business pay itself? ›

If your business is established and profitable, pay yourself a regular salary equal to a percentage of your average monthly profit. Don't set your monthly salary to an amount that may stress your company's finances at any point.

How long until a small business is profitable? ›

Creating a profitable business is a gradual process. On average, businesses take two to three years to become profitable. However, many factors determine profitability — while some small businesses fail within the first year, others with low start-up costs can even be profitable in the first year.

How to invest money in a small business? ›

Small business investments can take the form of equity or debt. Equity involves buying an ownership stake in the company in exchange for an infusion of capital, much like purchasing shares of a public company on the stock exchange.

How do investors get paid back? ›

The most common is through dividends. Dividends are a distribution of a company's earnings to its shareholders. They are typically paid out quarterly, although some companies pay them monthly or annually. Another way companies repay investors is through share repurchases.

Can I invest money in my own company? ›

Owning stock will give you an ownership stake in your company and allow you to participate in its future upside. The good news is that there are a multitude of ways to invest in your own company's stock, although the process might vary, depending on whether or not it is public or private.

How do you put money into your LLC? ›

Some common ways to fund an LLC include personal funds, business loans, crowdfunding, investor funding, and grants. How do I fund an LLC startup? You can fund an LLC startup by contributing your own money, applying for a business loan, seeking investors or crowdfunding, or applying for grants.

How do you get paid if you invest in a business? ›

Dividends are a form of cash compensation for equity investors. They represent the portion of the company's earnings that are passed on to the shareholders, usually on either a monthly or quarterly basis. Dividend income is similar to interest income in that it is usually paid at a stated rate for a set length of time.

Can a founder invest in his own company? ›

The SEC says that “Directors, executive officers, or general partners (GP) of the company selling the securities (or of a GP of that company)” are accredited. So, if you are a director or the CEO (or other executive officer) of the company, you are accredited and therefore can buy shares in your own company.

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