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What would an injection of cash mean for your business?

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In life, if we receive a sudden injection of cash we’re usually thrilled about it. Receiving $1,000 out of nowhere is fantastic and we can spend it without fearing anything. For instance, you could use most of it on fancy food or buy some new clothes that you’ve been looking at, but once it’s spent it’s not like you can’t simply return to your everyday life.

In business, it’s a little different.

For starters, a small injection of $1,000 doesn’t mean much when you’re already paying 5 to 6 digits per year in salary to workers, and it’s barely enough to buy a computer for work use. So what exactly does an injection of cash mean to our business, and what’s the best way to utilise it? Let’s find out.

How does one receive a cash injection?

So before we delve into what it means to have a sudden boost of cash, let’s identify the various ways you can get a sudden boost to your money. For starters, you could get a business loan fast that will bump up company funds. The other method is to sell many copies of your latest product and receive royalties based on your contribution. In short, a cash injection is something that happens infrequently, not something that happens over a long term such as a gradual increase in your customer base. It usually either happens as a result of luck, but it can also be forced with something like a loan.

How can the extra cash grow my company?

You might think about buying a new chair, a computer or something useful with your sudden boost of cash. However, there are plenty of ways to use the money in a way that could benefit all of your staff. For instance, if you’re looking to build a website, then some things like hiring a freelancer can become incredibly cost-effective choices. Do keep in mind, however, that anything you upgrade with the extra cash also needs to be maintained. For instance, if you hire a freelancer to create a website, then you’re going to need someone who is capable of maintaining, changing and updating it. If these features aren’t implemented, then you’ll need to hire the freelancer again to change it and it will cost you even more money in the future.

Buying equipment isn’t the only solution

Perhaps you decide to purchase a few piece of equipment for your company. For instance, if you run a design company then you might invest in a more powerful computer to do complex processing tasks. While this seems like a fantastic decision, it should be noted that a more powerful computer is going to cost more to repair, it’s going to cost a lot to upgrade and if it breaks, you’ll be spending a lot of money getting it back on its feet.

To summarise, you should be careful with what you buy when you receive a sudden injection of money. Unless it can almost instantly recover itself within a few days, most cash injections are used incorrectly. People buy all kinds of equipment but, while it is cool to use, it doesn’t seem to actually improve their work. There’s no proper way to use a sudden cash boost, but keep in mind that using it to grow your business without your business’s income actually increase is a bad idea. Instead, use the loan to improve the life of your workers and give them more reason to put their faith in you as a leader.

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Our women don’t want to settle for anything but the best. They understand that success is a journey involving personal growth, savvy optimism and the tenacity to be the best. We believe in pragmatism, having fun, hard-work and sharing inspiration. LinkedIn

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