It's a good feeling when you get that first payment deposit from Etsy - whether it be for £1 or £100. But what should you do with your profits? I recently got my largest chunk of money deposited into my bank account from Etsy, and my first thought was to have a massive online shopping spree and get myself some new work clothes (and by work clothes I mean pyjamas!). I mean, I deserve it right? I could buy a whole new bunch of clothes, and next month do the same. But what about if I reinvested some of that profit back into my business? Next month, I could have double that amount of profit - or even triple! Instead of blowing all my money, I set aside a little bit and bought myself an Etsy treat (To support a fellow seller!) and I have reinvested back into my shop to bump up profits. Now, next month, I will (hopefully!) have more profits because I reinvested. But what can you reinvest in? Keep reading to see how you can invest your profits back into your business - to get more profit! Put your profits towards new products So you have a bestselling item - it sells consistently and you make a bunch of your income from it! But what happens when new competition comes along and starts to take your target audience? You still get some sales, but no where near as many as you used to. Then more competition comes, and that decreases again. Unfortunately, the longer a product is on Etsy the more time your competition will realise its profitability and may replicate you in some way (Unlikely exactly the same, but maybe similar!). So what can you do? Use your profit to invest in new products. Don't rely on what is currently working to create a steady stream of income forever. Continue to develop new products that will match future trends - this could be new materials, new design software, or even trying a whole new product! If you're lucky, your bestselling item will continue to be so, but imagine if what you invested in also becomes a bestseller. Then you would be bringing in more income than before. Worst case scenario, you have back up products to keep you afloat if your bestseller suddenly dies down. Investing back into new products is an absolute must when it comes to business. Put your profits towards new equipment Equipment are items that you use to make your products. This could be a sewing machine, a cricut maker, a laptop, or even smaller items like fabric cutters! If your equipment is slow or depreciated it could be stopping you from reaching your full potential. If you reinvest your profit to buy a new piece of equipment that is super speedy and will get you creating quickly, you'll be creating more products and receiving more income. You may have started your Etsy shop with a second hand instrument, or something you've had for years. Why not give yourself an upgrade that will benefit your shop? Mechanical equipment, such as sewing machines, often slow down over time or don't function as well as they once did. Or maybe you have a 5 year old computer that takes forever to do simple tasks - getting an upgrade can save you valuable time to work on other tasks. This is why it's a good idea to invest in new equipment when you can to create more products and increase your profit. Put your profits towards new software and/or subscriptions New software and subscriptions can make your life so much easier. You can invest in subscriptions that help with content creating, automating your social media, e-mail marketing, bookkeeping or even towards building your own website. Anything you can subscribe to to speed up the process of your day to day tasks will give you more time to focus on your products and doing what you love. For example, signing up to a social media scheduler would allow you to bulk create social media content in one chunk, rather than having to post daily. Put your profits towards learning new skills Personal development is a big factor in growth. Although you can't claim personal development in your business bookkeeping, you can still use new skills to improve your business processes. Whether you use your profits to invest in a new course, or even an eBook that will help you gain understanding on a new topic. Investing in yourself can be a great investment in your business. You could learn new tips on social media, bookkeeping, marketing, optimising your shop, or even just general business management. If you look on Etsy, there are loads of planners and guides specifically to help with Etsy shops! For example, some of my most popular products are my Pinterest resources because my customers buy them to learn how to optimise their profiles. This increases their traffic to their Etsy shop, which in turn results in more sales. They are investing their profits into a digital resource to gain more income over time. This is a fantastic way to increase your profits. Put your profits towards outsourcing and delegation Outsourcing and delegation doesn't have to mean hiring a permanent employee. It can be hiring a subcontractor, or a one off package from another shop. You can hire subcontractors to complete tasks such as customer service, content creation, e-mail writing, blog creation, website creation, product research, audience research, and even SEO! If you struggle with a particular task, delegating can be a great way to free up your time and let you focus on the tasks you are good at. Small business owners are often scared of the thought of delegation - but you can't perfect everything. When you start learning to delegate tasks you may not be skilled in, you will see an improvement in your business profits because 1) Someone who is more skilled in a particular area will yield better results for your business, and 2) you have more time to do what you love - and that is creating your product! Hopefully you've learned a bit more about the benefits of reinvesting in your business, and what you can reinvest in to boost growth! Let me know in the comments what you've reinvested in, or something you will reinvest in in the future.
Have you checked out my FREE Etsy shop checklist? Get your copy here to see what tasks you should be doing daily, weekly and monthly!
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