How to Capitalize on Small Business Profits

As a small business owner, it may be admirable to say that you went into business to pursue a dream, make a difference, or even help others. While these are valid and real reasons for running a business, profit is also a key driver. Businesses are meant to give an excellent return to their owners, which comes through profits from products sold or services rendered.

Once the profits come in, a small business owner may take them out of the business as earnings. This is especially true for small businesses that have experienced challenges making it to profitability. However, this may not be in the best interest of the business. Interacting with an accountant or strategic business advisor can lead to guidance that makes excellent use of your profits. Here are some options that are worth exploring: –

1. Build up a safety net

Decide how much money you need to set aside to keep the business going when there is a lull in cash flow. Put enough money aside to cover your working capital for a few months.

2. Settle outstanding debt

Debts accrue interest and, over time, can become quite costly. Therefore, settling debts quickly may help save the business money in the long run, thus helping maintain profitability.

3. Invest in business expansion

This requires identifying and evaluating opportunities for growth which will result in a good revenue stream. Then, an accountant or finance professional can do the calculations and predict potential expenses and returns because of expansion.

4. Marketing Activities

Many small businesses are unsure of where to begin with marketing and the cost implications. With profits, you can start with digital marketing that requires a small investment. This allows you to track your results, improve your strategy and improve customer conversions.

5. Improve operational efficiency

A key characteristic of small business owners is taking on too many operational roles at the start of the business. With profits, it is possible to improve operational efficiency by outsourcing repetitive and specialist tasks like accounting or payroll. This enables the business to benefit from the services of a qualified professional at an affordable cost.

Choosing any of these options is the best way to set your business up for future growth and success. With the support of a strategic business advisor, you can assess which of these approaches will help you achieve the most favorable result. Use your profits to create business excellent. RCN CPAs have a team at hand who can guide you down the right path.

Miriam Blednick

I am a small business owner and found this firm a few years ago and could not be happier. I was worried it might be hard to switch but after my initial meeting with the owner, Nneka, and her staff it was an easy decision. They are all amazing people. We have an unusual business model but it took them a very short time to understand because they asked questions and listened. Over the past three years, Nneka, has given me excellent advice that helped me make solid decisions for the business and for my personal retirement. If you need a CPA, they see all types of clients, I personally and professionally highly recommend them.

Seyi Oshikanlu

Nneka is knowledgeable, she listens and understands your goals and then makes a plan to achieve these with you. Many CPAs simply use software and are not ready to educate you on how to utilize the benefits you have. She is not a cookie cutter professional but one who cares, listens cos she has ears and then helps you achieve your goals! Thanks so much!

Maurer Co Retaining Walls

They have really helped us to keep on the right track!! We love our accountant!! They give us monthly financial statements and we have a standing monthly online meeting to go over our statements, ask any questions and plan for the future. Best accountant ever!!!

Cosmic Aureas

CPA Nneka Nwobi provided very valuable tax related recommendation which helped save thousands of dollars that would have to otherwise be paid to the IRS. Nneka is very professional and prompt in email communication. I am truly thankful to her and appreciate her for her knowledge and the valuable recommendations that she made on how to best approach my situation.

Romaine Washington

I received very valuable tax information from Nneka Nwobi. Making her services and tax questions available with no obligation is a lost art from any business owners today. I really appreciate her professionalism, knowledge and recommendations on how to best approach my text situation.

Anthony Okoye

Excellent service

Ron Campbell

Nneka Nwobi's response to my request for help in making some adjusting entries and correcting some accounting matters was EXCELLENT! I especially appreciated her showing me how to do it using Zoom screen sharing on my Quickbooks account as well as explaining the transactions. It is a pleasure working with her.

Redmond Bandy

This place is so professional, timely, and they pay attention to detail. Will be working with them forever. 10/10

Yasuo Matsuzawa

Great team at RCN and the team is efficient

Scott Korey

Everything you would look for in a CPA: professional, timely, and personal. I've been trusting them for years with tax preparation and love the confidence that engenders. Their service is a great value, as well.

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