It’s a challenging time to contemplate investing in growing your business, yet there may be some valuable opportunities to take advantage of the current market by diversifying your offering. As Benjamin Franklin said, “Out of adversity comes opportunity”. Sometimes. Before you go head-first into growth mode, it’s crucial to weigh up the risks vs benefits of any investment or new business direction – you need to find the right balance between managing risk and driving sustainable growth. Here are some factors to consider: What’s your market doing? What are your clients doing in the current pandemic? Can you see an opportunity to support them with new products and services as they pivot their offering? Are they spinning their offering in a direction that doesn’t align with your business or values? Will the asset or approach you’re considering investing in still be relevant to their needs in six months? Is the current environment opening your business to new markets? Manage Your Finances Ongoing, intermittent lockdowns, closures, significant downturns in sales and changing JobKeeper support packages make it critical to manage your cashflow by budgeting carefully. Before you jump in to take advantage of incentives, as the instant asset write off or a Government-backed SME loan (which will require repayment within 36 months after a six month repayment holiday), consider whether you’ll be in a position to make the repayments in the long-term. Follow Your Plan Your strategic plan sets the course to achieve your business “big picture,” i.e. your goal. While you need to be flexible, with tactical decisions to navigate through economic and environmental change, don’t be tempted to jump into short term opportunities that will steer you off track. Do a SWOT It’s vital to regularly undertake a SWOT Analysis – write down your business Strengths, Weaknesses, Opportunities and Threats – over time they will change with economic and environmental trends, your evolving business expertise, as well as the entry and departure of competition. Let your SWOT guide your tactical direction. Risk Vs Reward Create a ‘risk vs. reward matrix’ before you embark in any new investment or direction. If you perceive the risk will far exceed the expected reward, let it go. But if the perceived rewards outweigh the risk, give it reasonable consideration. Be Compliant Times are tough, but that doesn’t mean you should take unnecessary risks when you grow your business. Whatever direction you take, be sure you are compliant with industry and government regulations – you don’t want a problem to come back and bit you down the track. Look for Expertise and Guidance Before you make any financial decisions, it’s essential to consult your accountant and lean in on the expertise available to you. At the Ayers Group, we can connect you with experts in the field to advise on investments and growth. We can also relieve you of the burden of managing your business with payroll solutions, contractor management and more. Talk to an expert from the Ayers Group today and get back to growing your business and your wealth.