SME Success Guide reinvestment

Rule 5: Develop a reinvestment plan to strengthen your business

Investing back into your business can help it move forward and grow. Whether this is through research & development, new technologies, or hiring extra staff, decide on how much of your profits could be reinvested into your business to propel it forward.

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In partnership with

Cerb-logo

SME Success Guide reinvestment

In partnership with

Cerb-logo

COVID-19 has made reinvestment a more difficult prospect for many businesses, especially those that have had to eat into their cash reserves just to survive. As a result, more detailed and thorough planning needs to be done for reinvestment post-COVID-19. Take time to thoroughly assess your business’s needs and where investment could have the biggest impact, and try and give this a figure. Then, look at the money you have available – how much of this can be side-lined for reinvestment and how much do you need for other purposes?

Unfortunately, many business owners may need to make compromises here and this is especially the case when it comes to the income you personally take out of your business. This is why is it so important to have a formal, long-term vision and to appreciate what level of reinvestment is needed for the long-term future of your business.

Such difficult decisions don’t need to be made alone, however. Think about where you can find advice on this matter, such as from your accountants, online resources, a part-time financial director, or third-party connections (see next chapter). Not only can these support business owners, but also challenge them in how they think about reinvestment and what needs should be prioritised.

Free resources

We have partnered with part-time finance director specialists The FD Centre to provide a free webinar that discusses how business owners can determine the best way to reinvest back into their business in greater detail. Alongside exclusive insight, attendees were given the chance to ask questions directly to our experts.

Click here to watch the webinar.

Six Rules for SME Success

Small businesses will be the driving force behind the UK’s recovery from the COVID-19 crisis.

To support businesses through this period, Allica Bank has produced an independent report in partnership with the Centre for Economics & Business Research (CEBR). We have identified six key business drivers that will empower SMEs to succeed in a post-COVID world.

Each rule is backed up with actionable insight, expert analysis, and data from over 1,000 leading UK small and medium-sized businesses.

Download the SME Guide to Success

We’ll email you the guide to the address you provide below.

Why not join our webinar to learn more about investing back into your business?

“Deciding what percentage of your profits to reinvest into your company is tough. But one thing is for sure: investing back into your business is one of the most sure-fire ways to empower your company to achieve success in the long-run.”

James Heath
Chief Financial Officer at Allica Bank