5 Great Ways for Businesses to Spend Surplus Cash

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5 Great Ways for Businesses to Spend Surplus Cash

If your business is in a good position and you’re making a profit, you’ve made it past the first big hurdle. Congratulations!

Having extra cash doesn’t seem like it would be a problem but sometimes, it can be. You need to decide what you’re going to do with that spare cash and that can have a big impact on the success of your business.

If you make bad spending decisions, you’re wasting that money and missing out on good opportunities. If you’re finally in a position where you’ve got some extra cash to play with, here are some of the most sensible ways that you can spend it.

Does your business have surplus cash? Here are some great ways to spend it. #WaysforBusinessestoSpendSurplusCash1. Don’t Spend It

The first thing you can do with your money, and one of the most sensible, is nothing.

Do absolutely nothing with that money and just put it away in an emergency fund.

Even if things are going well right now and you’re making a lot of profit, that doesn’t mean you’re set forever. You never know when sales could dip and your cash flow is going to dry up completely. But you’ve still got all of your bills to pay and if you don’t have the money to do it, your business is in real danger.

If you’ve got that extra money and you haven’t spent it all, you can use some of that to cover your overheads until sales pick up again.

However, if you don’t have any cash reserves set aside, you’ll have to resort to borrowing to stay afloat and that’s going to land you in a bad financial position in the long term.

2. Invest In Your Workplace

You could just sit on the money and do nothing or you could just take a larger salary for yourself but one of the most effective ways to use that money is to reinvest it in the business again.

If you want to push your business forward and expand, you need to spend a bit of money in your business.

There are all sorts of ways that you can do that. If your computers are outdated, they’re slowing everything down. Your employees will be a lot more efficient if you spend a bit of money updating them.

New software that automates some of the basic aspects of the job will make life easier for your employees and free up some of their time that they can dedicate to other parts of their job.

Updating the office space is a great idea as well because a good working environment has been proven to boost productivity. These are just some of the great ways that you could reinvest the money in your workplace.

3. Invest It Outside Of The Company

You don’t always have to think about spending the money in on the company. If you look to the long term and think about generating a regular income stream that you can fall back on, it could help you through a slump in the future. There are some good investment opportunities that could help you to do that.

Investing in a property is one of the safest strategies there is at the moment. This resale HDB portal will give you a good idea of what you can get for your money.

If you invest in a property, you’ll be able to get a regular monthly income by renting it out. You’ll also have a great asset to sell in the future if you need a big cash injection for something.

You could also consider investing in stocks but be aware, that’s incredibly risky.

Mutual funds that combine a lot of different stocks into one investment are the safest way to invest because, if some of them go bad, you’re protected by the rest of the stocks that might be performing better. It’s not completely risk-free but it’s a lot safer than individual stock investments.

You could also look at penny stocks which are sold for less than a dollar. It’s a great way to get into stock investments with a small amount of money so there isn’t too much risk.

Investing is a good way to spend your extra cash but you’ve got to be careful. Don’t put all of your eggs in one basket and lose it all.

Does your business have surplus cash? Here are some great ways to spend it.  #WaysforBusinessestoSpendSurplusCashIncrease Salaries

It’s no secret that people are more motivated if they’re getting paid more. When you’re first starting out, you won’t have the money to give people a regular pay increase. But now that things are going well and you’ve got that extra cash to play with, you should reward your employees with an increased salary.

It’s a good way of showing your staff that you recognize their hard work and you’re willing to reward them for it.

If you don’t have enough surplus money to give people a regular pay rise, you should think about giving them a one time bonus instead.

You could also think about their benefits, particularly their pensions. Most employees are probably a little worried about their retirement funds, even if you’re making as much of a contribution as you can afford.

Why not alleviate some of those worries by making a larger contribution to their pension fund? If your employees can see that you’re using extra money to help them out, they’ll know that you have their best interests in mind and that will make them more motivated in the workplace.


You already know that training new staff members properly is important, but what about your existing staff members? Not giving regular training sessions is one of the biggest mistakes that people make in business.

It gives you a chance to identify anything that is slowing your employees down and give them the training to rectify the problem. It makes life easier for them and they’re more productive so it’s a bonus for you.

If you’ve got some money to spare, speak with your employees and see whether there is anything that they are unclear on and set up some training sessions.

These are all great ways to spend that surplus money, just make sure that it doesn’t go to waste.

Cash Image Credit: Pxhere

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About Lauren Kinghorn

Visionary Digital Entrepreneur ► Heart-Centred Influencer | Plant-Based Enthusiast | Speaker | Writer | Course Creator | YouTuber | Podcaster * Come join me at Wealthy Affiliate * inspiringmompreneurs.com/WA

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