Where to Reinvest Back Into Your Business for Exponential Growth

26, Apr 2024

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Where to Reinvest Back Into Your Business for Exponential Growth

The Amplified Impact Podcast
April 26th, 2024


If you’re building your business and seeing success, what’s next?

What do you do with all that excess cash flow? Here’s a rundown of six ways you can reinvest it:

– Invest in Yourself
– Boost Tech Infrastructure
– Hire and Develop Talent
– Expand Marketing and Branding
– Acquisitions and Mergers
– Invest in Other Assets

Tune in as I dive deeper into these six ways. Remember, pouring back into your business can maximize your return on life and help you reach new heights.

 

TWEETABLE QUOTE:

“You are the most valuable investment in your life. You are going to pay compounding interest for the rest of your existence. And so the more skills, the more abilities that you have, the more access to high-level people you have, the more you’re going to be able to impact and influence the world.”

– Anthony Vicino

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Episode Transcript:

All right, so you’ve been building your business. It is thriving. You are crushing it. Maybe you joined the beyond the apex community, and you are like, you have more money than you know what to do with now, because everything is going so swimmingly. And you’re like, now what do I do? What do I do with all this excess cash flow? This is the problem that I found myself in about, this was about twelve years ago, you know, I went very quickly from living in the van to our window washing company, producing a lot of cash flow. That’s the beauty of a, of a service business like that. Not a ton of overhead, lot of cash flow coming through. And suddenly I was like, what do I do with this? What am I supposed to do with all this money? And that’s a good problem to have.

I went to the people further ahead of me and I was like, what should I start doing? And these are the six things that I repeatedly heard from people that I wanna share with you. If you’re at that point in your journey, where do you reinvest this excess cash flow that you don’t wanna go spend it, right? And you just don’t want it to sit in the bank necessarily. So what should you start doing with your money? Because now you’ve made it, now you need to manage it. So the first thing that you need to do is reinvest into yourself, reinvest into leveling up your skills, leveling up your network. You are the most valuable investment in your life. You are going to pay compounding interest for the rest of your existence. And so the more skills, the more abilities that you have, the more access to high level people you have, the more you’re going to be able to impact and influence the world. So that is, number one, is reinvest into yourself and reinvest as much as you can until you physically can’t reinvest anymore.

Honestly, there comes a point where you’re like, I can’t join more masterminds, more networking groups. I don’t have enough time. I can’t invest in more skills because I physically cannot consume as much. All that information you can only acquire at such a pace. The next thing that you’re going to want to start investing into is your technology infrastructure within your business, and that’s going to include, you know, more advanced tools and softwares. These generally help increase the productivity and effectiveness of your team. Not always, though. Be really careful.
Complexity often obscures true effectiveness. Simple systems tend to scale better, so don’t just add on layers of complexity for the sake of doing it and thinking, oh, this is what big boys and big girls do with their businesses. So make good, wise decisions here. But there’s often improvements that you can make to your technology infrastructure that you’ve been putting off because you just didn’t have the resources. So as you start to make a little bit of excess cash flow in your business, this might be a really good place to reinvest. Third, talent acquisition and development. The truth is, your business is one amazing hire away from all the growth you could ever want. Think about this.
If you had the ability to go out right now and hire warren buffett, you, within probably a year or two, could have a billion dollar business. Right? The problem is you cannot go and recruit warren buffett. You just don’t have enough money. You don’t have enough influence. You don’t have enough, right? You just can’t do it. But the theory is interesting, because if you could hire that person, you could have all the growth in your world. Now, there are people below warren that you can get access to that can help your business explode and grow. But they are expensive and they require a lot of money or a lot of resources, a lot of equity.
They require a lot of flexibility, a lot of control. They require a lot of stuff. This is the time, as you start to have money coming in to think about, like, how do I go get those people? Now, if you have those people, or if you have great people already on your team, you also want to be thinking, how can I reinvest into them to help them continue growing and leveling up in the same way that you are reinvesting into yourself to level up your skills, you want to pour back into the people on your team to help them continue growing as well. Number four is to invest in more marketing, more branding. You can pour more money onto the flywheel, onto the engine of getting more eyeballs, more visibility. I’m a big fan. When you reach the level where, okay, we can’t really continue, you don’t want to get too far ahead of your skis. Right.
When we were in the manufacturing business at Escape, there was a very fine line that we had to walk, that we weren’t bringing in too much business overnight because we were the ones in house manufacturing it and we only had so much capacity. Right. So it wasn’t like, oh, we can just bring in another million dollars of revenue because we wouldn’t be able to produce it. We just. It would have taken too long. Right. So you need to be careful not to grow too far over your skis. But there is part, there is types of branding or types of marketing that we can do that we can pour money into that might not lead to more sales in the short term, but in the long term is going to solidify.
It’s going to strengthen our brand position and give us more pricing power, let’s say. So instead of like we can bring in, say, a million dollars of business based off the back of our brand and we’re able to charge more. That’s different than if we’re doing a million dollars as the low cost leader. Right. The amount of fulfillment that we have to do in the one example where we have a strong brand and we have premium pricing power might be half as much. And so that’s what we wanna be investing in right now, is building that infrastructure of brand. And the beauty of brand is that it takes a long time to build. And so you can pour a lot of money into that in the short term and not necessarily see it start to sag the boat, so to speak, of your team on fulfillment and production.
All right, the fifth thing is acquisitions and mergers. This is a great way as you hit this certain scale, that you can start growing even faster. Because really, there’s only two ways to grow a business. You can either buy or you can build. Building is how we went from 300,000 to 3 million at escape within the span of two or three years. And then to go make that next jump, we started acquiring our competitors. And that is a great way of getting access to more product, getting access to, you know, great talent, that’s a great way of getting access to new customer lists. That can be a very, very powerful way to grow your business.
As you start to have a little bit of excess coming in, the last thing that you can do with your money as you start to have, you know, this great problem of, okay, we’re too successful, too, too much cash flow is to start investing in other assets. That could be real estate, could be stocks, it could be money markets. One of the things that we did at escape was reinvesting into buying the buildings, right? Like the building that you’re in. That’s a great use of capital. You could go take it and invest in other real estate then. Not necessarily real estate that you are inside of and operating out of as a business, but you can go buy commercial real estate now. That is the very last thing I would recommend business owners invest in is assets outside of your business until you probably get to high seven figures, maybe even eight figures, because truly at that point, your best investment is generally putting it right back into the business to grow. That’s where you’re going to get.

The largest ROI is investing into your growth machine. That is your business. So those are some ideas. Those are six ideas of where to invest as you start to have a little bit more success with your business. Think through these and apply them. And the truth is, you don’t need to have a lot of money just sitting in the bank before you start making these investments. You can start as it comes in investing back into yourself, into your team, into your technology infrastructure, to your branding. You want to be pouring back into these things as you go, not just waiting for one big lump sum and then throwing it all on the fire at the same time.

So hope this brings you guys some value. If you want some more tips and ideas about how you can grow a business in a way that allows you to maximize your return on life, then check out beyond theapex.com dot. We are going to be launching this amazing community that’s going to include coaching. It’s going to be fantastic. I’m really excited about it. I’m not going to go into the pitch right now, but go check it out and we will let you know when that’s about to launch and we’ll catch you guys in the next episode. Until then, stay upper focused, my friends.

 

 


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