Once you have consolidated your company, it is time to enjoy the profitability and earnings it produces, but is this the best investment option?

If you run a medium-sized company (20+ employees) that generates profits for shareholders and you aim to take it to the next level, it is crucial to develop a focused reinvestment plan. But in which areas should you focus your approach?

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My first suggestion is to invest in executive talent. This talent must drive improvements in the company, execute the established sales plan and exemplify leadership that will inspire other employees.

Investing in talent can be divided into two aspects: retaining existing talent and recruiting new talent. In retaining talent, it is important to recognize that valuing what you already have can be complicated for human beings.

When it comes to hiring, you need to be meticulous in the selection process. This begins with the precise, written definition of the requirements sought. In addition, firmness is required to dispense with those who do not fulfill their designated role.

Another key area of investment is corporate culture. Constant repetition of the company’s purpose and method is essential. This not only involves an investment of time, but also of resources to generate content and hire leaders to deliver and enforce the message. Investment in culture also involves economic incentives that reinforce adherence to the desired corporate culture.

It is essential to hire talent that documents, integrates and automates processes. Medium-sized companies are vulnerable to loss of knowledge when facing departures of employees, collaborators or suppliers. Minimizing this risk becomes essential. In addition, the productivity of these companies can be affected by the departure of a key element, so it is necessary to mitigate this risk.

Invest in talent capable of optimizing the document management of the company’s information. The ability to access information quickly, completely and consistently is a crucial mechanism to reduce risks and save time.

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Look for talent that identifies areas where manual tasks increase the risk of errors or wasted time. This talent must be able to integrate solutions into the company’s pre-existing information system.

Finally, don’t skimp on investments in hardware, software, machines and automation. The adoption of new tools can reduce risks, standardize products and reduce production times.

There are several investment alternatives that could emerge:

1. Explore New Ventures: One option is to embark on new ventures to diversify your wealth. My recommendation is that, if you do not already have a stand-alone business, keep your focus on growing and consolidating your current company.
2. Develop New Lines of Business: Another possibility is to start new lines of business within your company, taking advantage of opportunities you have identified for the introduction of new products. However, I advise you, if you do not yet have an independently operating company, to prioritize the growth and consolidation of existing products.
3. Make Financial Investments: Diversifying your wealth through financial investments is an option to consider. However, I suggest you avoid making investments in which you do not have control and knowledge, since the risks could exceed the expected profitability.
4. Investing in Real Estate: Investing in real estate to diversify your wealth is a common alternative, although I personally believe that most entrepreneurs could find more profitable opportunities.
5. Enjoy the Profits: Of course, you can also enjoy the profits from your business through travel, shopping, fine dining and experiences. While this is a valid option, never neglect growing your business and managing the risks associated with your lifestyle.

There is no single path and no single recipe, but capitalism gives us multiple mirrors to improve and grow our business, so let’s look for them and take advantage of that experience!

Note: This article was proofread by ChatGPT.

What should small businesses invest in?