The April 15th deadline for filing your taxes has come and gone and you survived (hopefully). More importantly, if you’re expecting a tax refund, you’ve probably already starting thinking about ways to spend the money — especially considering the average refund is almost $3,000.
There is, of course, the responsible route. You could put your refund in a savings account in case of an emergency, pay off high-interest personal credit card debt or even invest in the stock market.
On the other hand, you could also have some fun with the extra cash. Maybe it’s finally starting that home improvement project, taking a much-needed vacation or even splurging on something you’ve had your eye on for quite some time like a new car. In fact, according to a recent poll by Travel Leaders Group, 43 percent of people plan on spending their tax refund on traveling while another study by eBay found that 33 percent of Americans will spend their refund on a new vehicle.
However, for small business owners, you may want to consider investing this extra cash into growing your business. Whether you are just starting out or have a respectable presence in your market and city, some extra money can go a long way in future success.
Investing in Your Website and Online Presence
Finding the best avenue to put your money to use may seem like an overwhelming task. From advertising to hiring employees and even improving your office, there are a number of ways you could invest your tax refund money into your small business. But which is the best?
Web designer and CEO and founder of the international online perfume retailer GrandPerfumes.com Sonny Ahuja suggests investing money in building a better website and launching a Google Adwords campaign. Both of these investments can help attract new customers to your business for not much money. Additionally, hiring copywriters to produce quality and unique content, can go a long way in attracting new and loyal clients.
Along the same lines as improving your website, one of the most effective and least expensive marketing strategies available is adding videos to your site says Alfred Poor, author of “Power Marketing for Small Businesses: How You Can Boost Sales with Low-Cost Video.”
“A professional short video can cost $500 or less…and you don’t even have to own a camera or a computer,” Poor said.
Thinking About the Future
Along with investing your tax refund directly into your business’ marketing campaigns, website and other areas, many experts also recommend using this extra cash flow to pay off debts or for investing in benefits for your employees.
This is especially the case if you are experiencing steady growth and are looking to keep valuable employees on staff. From using the money for a company outing to boost office morale to paying the start-up costs for a 401(k) retirement plan, it is important to show your employees how much you value their hard work and dedication.
Seek Professional Advice
Remember that your business is unique and what is right for one business may not be right for another. Make sure you speak with a financial professional about how to best use your money so you can continue growing and have a bountiful 2013.