One of the things that separates truly financially successful people from the rest is that they don’t just work for money, they make money work for them. You might be thinking that in order to do that you need hundreds of thousands of pounds, but with as little as £1000 you can make a great return by investing in yourself, your team, your business or even a new passive income stream. Following on from my podcast, 11 Great Ways to Invest £1000 in Your Business, here are my top tips for how to make your money work for you.
How to invest £1000 in yourself
I have always been interested in learning, but I haven’t always formalised that process. You don’t need to spend a lot on it to be formal about it, but be holistic – consider all aspects of personal development from your business knowledge to your broader reading, as well as your health and well-being. Here are some of my top recommended ideas.
Read to understand how to make your money work for you
Books for me are still the best place to go – whether you go for an audiobook while you’re in the gym or read it directly. Find what you’re interested in and look for recommended books from experts. It doesn’t have to be a business book, read biographies and learn from their failures as well as their successes. Warren Buffet has always been an advocate of reading and learning, saying: “Go to bed smarter than when you woke up” – wise words.
Take courses to invest in your knowledge
In addition to books, there are so many courses out there, both free and paid, for you to take advantage of. Explore different types to find out what works for you, whether it’s in-person events or online webinars. Decide what you’re interested in and listen to podcasts, interviews and take virtual classes – lots of them are really quick so it doesn’t have to take up a lot of your day.
Take care of your fitness and make money while I sleep
Don’t underestimate the importance of being physically well in order to be able to perform mentally. Exercise, and eat well, and you will be amazed at the impact it has on your ability to focus, innovate and, perhaps most importantly, stay positive when things aren’t going your way. Physical well-being has a direct impact on mental well-being, and if you’re interested in the science around it there’s a lot of information out there on the topic. For example, there’s interesting research into the gut-brain connection as well as studies into how physical activity can improve mental health, not to mention the importance of getting a good night’s sleep.
Invest time and money in a mentor for personal and business development
No person is an island and everyone can benefit from a mentor or coach. Whether they are classed as an official mentor or perhaps they’re a non-executive director that you really trust, these are the people who can help to push you, hold you accountable and encourage you to question your thinking for the best outcomes in your professional and personal development as well as the development of your business.
Invest £1000 in networking
You don’t actually need to invest a full £1000 in networking. Then again, if you wanted to, you could spend a lot more. Either way, we live in a global community and networking is a powerful tool, but a lot of people don’t do it well because they don’t know what they want out of it. Be targeted in who you want to meet and why you want to meet them – professionally or socially, but also be open-minded about where connections may take you. Is there a goal or do you just think they’re interesting? Both are great reasons to get in touch with people, but know why you’re making a beeline for certain individuals, whether it’s at certain events, online or meeting someone for coffee. After you’ve met someone, don’t forget the importance of nurturing that relationship – it may be that nothing comes from it for a number of years. It may never come to something tangible, but you will have interesting conversations and learn a lot along the way. Either way, you never lose out – if you’re listening to other people you’re always learning. Be helpful, introduce people you think may work well together, and you will find that over time those relationships become invaluable.
Make money while I sleep: go on holiday
This sounds counterintuitive, but to do well at work you also need to be relaxed and clear-headed. Thinking time is often where the magic happens – being in the office is where you put it into action. Most of us can’t really think at our desks – it’s out on a run or letting thoughts percolate in the back of your head. Make sure your business is in a position to thrive in your absence (which also makes it a more valuable asset if or when you come to sell it) and invest in time off so you can recharge and think clearly.
How to invest £1000 in your business
Want to look beyond yourself and invest £1000 in your business to make your money work for you? There’s plenty you can do there to make a big difference as well, whether you spend it all in one area or spread it across different areas of your company.
Invest £1000 in your team
Much like your holiday, your team won’t work at their best if they’re not bonded, motivated and thinking laterally. Spend money on helping them get there with bonding events that give them great memories and things to talk about – that doesn’t just mean going to the pub after work.
Spend money on social media marketing
The greatest marketing gift of the 21st century is social media. Nothing else offers that global reach, with a free baseline cost and with so much in your control. That said, with so many people using social media it can also be harder to break through the noise. The key is to be strategic in what you want and treat it like a networking event. Engage with followers and people who comment on posts, use competitions, boost posts with advertising spend and follow up on communications.
Invest in influencer marketing
Influencer marketing introduces you to a new audience and generates trust and consumer confidence. Some influencers cost tens of thousands and some don’t. The important thing is to make sure that their association with your product is authentic, and that their audience aligns with your target market. Try working with one or two and really invest with them rather than casting a wide net. The organic reach of most platforms is getting smaller, so be prepared to boost posts or do paid ads that are compounded by the influencer effect.
Invest in paid search engine marketing
This can be a minefield to make sure you don’t waste money on paid search engine marketing. However, it does allow you to be specific with search terms so you can target the right people who really will benefit from your product or service. You can also track the success of a campaign right down to where your customers come from and tweak it accordingly.
Use content to grow your business
You will have heard that content is king – anything that involves the written word, audio, video etc., that showcases you, tells your story and gets your message across, has power. The content you create is dictated by your business and your style, and the Internet will eat up as much as you can create but you have to make sure the quality is good if you want it to stand out. That doesn’t mean you need to hire Hollywood to make your videos, but it does mean that there has to be substance to what you’re saying. Make sure your content speaks to what you really think, value or sell. You can make creating content cost-effective by going to good freelancers instead of having a full-time team member working on it. Just make sure you’re clear on what you want them to do and give them clear instructions – they’re not mind readers.
Make money work for you by negotiating payment terms
A great way to make your money work for you is to spend it strategically. For example, if you have regular suppliers that you’re working with, can you negotiate better rates or payment terms to maximise your budget. If you buy more upfront can you get discounts or a longer payment term while your money earns interest elsewhere? Don’t forget money saved is more valuable than money earned – if you factor in UK corporation tax (currently 19% but soon to increase to 25%), a pound saved is worth £1, but £1 earned is worth 81p (soon to be 75p), which makes every saving extremely valuable even if the upfront cost is higher.
Invest £1000 in your business image
First impressions count, so invest £1000 in a brand audit and update. Get a brand consultant to review everything from your website to your logo and make sure your image is spot-on for your target market. Your brand is an essential part of increasing loyalty amongst existing customers and separating you from the crowd of prospective clients. Having an identifiable and memorable brand (for all the right reasons) is crucial for brand resilience, sustainability and growth. Even if it’s repainting the office so visiting clients feel like it’s a slick operation can go a long way.
Generate a new or passive income stream
Whether it’s a passive income stream to make money while you sleep, or a new revenue stream to add more income and spread your risk in a fluctuating economy, not having all your eggs in one basket is always a good thing. While you shouldn’t spread yourself too thin, if your current business is in a stable place, a new income stream to provide safety and diversification to you and your business could be a great investment. Think about what happened in Covid – some businesses found their source of income decimated overnight whilst others thrived. How can you use that knowledge to buffer yourself against future headwinds?
There’s no right area, focus on your skill sets and areas of interest, but try not to make your next venture too dependent or too similar to your current business. Look at where your current business is vulnerable to external factors so that if something happens beyond your control, your next venture isn’t subject to the same stressors and you increase your chances of always having at least one thriving revenue stream.
Want to explore new business and investment opportunities? Invest with me or send me deals that you think I should add to my portfolio and let’s make money work for us together.
