Strategies and Tactics for Women by Dr. Shannon Reece

1. Get Your Strategy On!

When considering whether or not to take that reinvestment risk, I weigh the value proposition for my clients. Will this investment create sustainable advantage for the people I serve? Will it allow me to extend my reach, make it easier for people to do business with me, and allow me to become a greater resource to the people I serve? If the answer is yes, yes, yes…it is time to bust a move.

Thanks to Dondi Scumaci of Dondi Scumaci, Inc.

2. Window Shopping

I could break out the MBA and start talking about net present value and depreciation and all that jargon. But really, when you own your own business reinvesting becomes a matter of what you need, what you can afford and what you need to afford. Always ask yourself, what is going to make you money now? Can your business get along without it, and if it can, what are you sacrificing? If it is not going to bump your business to the next level, then don’t invest, just window shop.

Thanks to Lauren MacEwen of SM Cubed Consulting

3. Splurging

Yes, it is if the business is able to sustain that loss. Every business will hit that point where a significant investment/splurge will advance the company and the stakes will be high. Whether it’s a new trade show to go to, or a new machine to enhance capabilities. A business only takes significant steps forward when it takes significant risks. But definitely make sure you have all the information possible to make that informed decision. Don’t do it on hope and a prayer.

Thanks to Michael Wang of Monyusa

4. Re-investing In Your Business

I believe that every entrepreneur should constantly re-invest in their business. It’s easy to think that one can start a business, make money and keep all of the profits. However, with business funding becoming more and more difficult, it’s becoming harder to secure funding whether that be in the form of a loan or external investment. At least 50% of your profits should go back into the business so that you always have sufficient funds to keep the business going.

Thanks to Victoria Olubi of My Curls

5. Reinvest In Your Buisness

Realize that this is a strategic decision. You must consider “do you want to be “in” the business”? or “manage a company?” Both require some planning and input from your business advisers.

If you would like to continue with your hand on the pulse of the business day-to-day, direct all the activities and limit your revenue, then you may be interested in a small business loan for ongoing working capital. However, if you would like to grow the business, then you need to plan to grow which needs $.

Thanks to Denise Beeson of Santa Rosa Jr. College & Bay Sierra Finanical, Inc

6. Basics On Deciding When To Reinvest

1. Only reinvest if the money will make your job easier, improve your products & services, and/or increase business.
2. Never be talked into spending money by a sales pitch.
3. Value is always a bargain, second-rate is always a ripoff.
4. Never splurge. Never pay full retail. Get the best value you can.
5. Quality used, is better than crappy new.
6. Never use your home for collateral for a business loan–can anyone say foreclosure?
7. Pablo says – “Live below your means & above your fears.”

Thanks to Beverly Solomon of Musee-solomon

7. Considerations Before You Take A “Deep End Leap.”

1. Is it in line with your ultimate business goals & objectives?
2. Do you have the capacity & quality of staff to manage the expansion?
3. What’s the market outlook for such a product or service?
4. If the investment isn’t directly technologically related, what will be the impact of technology on this investment over the next several years?
5. How easy is it to secure any additional funding should that be needed?
6. What impact will the money you want to reinvest have on your cash
flow/reserve?

Thanks to Victor Kwegyir of VIKE INVEST (UK) LTD

8. The Urge To Splurge

Splurging on the business is best done when your competitors are too scared to. When other companies are being cautious, spending becomes a competitive advantage.

Thanks to Anand Bhatt of Sonic Wave International

9. Steps To Investing

Big investments can make or break a new business. Financial strain can be quite burdensome. However, if the investment is right at the right time, your business will flourish. I do my research, & set aside some time, energy & resources to learn about the situation & possible outcomes. Don’t over-analyze — trust your gut & then live with the decision. It’s better to have made a decision & learned from the outcome, rather than be paralyzed from fear of making the wrong decision.

Thanks to Michelle Salater of Sūmer, LLC.

10. The Urge To Splurge

I re-invest in my business when there are changes in the market, such as ways my clients are doing business past vs. present, and take a contrarian point of view from everybody else’s way of traditional marketing, & stand out from the crowd. I assess the possible new & creative ways to harness the power of distinction. I decided to up my game last year when the markets were down, to try to pursue a different avenue to make my business stand out, even if it meant sacrificing the simple luxuries.

Thanks to Jennifer Chiongbian of Rutenberg Realty NYC