Funding for new capital investments can be financed in a variety of ways, including budget reallocation, revenue reinvestment, cash savings, loans, lines of credit, equipment or inventory financing, factoring, or even mezzanine financing. Finding the right lender is just as important as finding the right loan.

Here’s a list of five key areas where strategic investment can produce significant improvements to your company’s bottom line:

1)    Investing in Technology

Investing in technology or upgrades—such as a new computer system or network, updated software, new accounting or billing systems, or new or updated equipment—can help improve the efficiency and productivity of your business. Reducing loss, streamlining billing and invoicing, reducing employee task time, and improving the efficiency of your business systems can increase your cash flow and reduce expenses. Whether you opt for a custom or off the shelf solution, new technology can have an immediate positive impact on your bottom line. In most cases, your customers will thank you for the upgrade and increase their loyalty.

2)    Investing in Marketing

Increasing your marketing efforts can help you reach a wider audience, increase your market size, and build better brand awareness. This may involve a combination of email marketing, advertising, social media, and a loyalty program. Boosting market share can increase cash flow and profits. Clients love to hear what you have planned in the near future and really like rewards programs.  Studies show that people spend 67% more with a company that has a loyalty program. That’s a hefty return on an investment!

3)    Investing in Real Estate

Commercial real estate is often a good investment—similar to residential properties—and can increase in value over time, depending on the local market. Owning your own building(s) can yield tax benefits, save on rental expenses, and generate income by renting extra space to other businesses which helps pay off investment costs faster. Selling commercially owned real estate can also produce significant profit for a business later.

4)    Investing in Energy Efficiency

Reducing energy costs can yield significant savings for your company. This might involve investing in a green fleet, alternative energy for buildings, energy-saving lighting, and temperature control or water systems. While there is an initial cost upfront, the savings later could be significant and green energy systems can easily pay for themselves over time. Depending upon the states where your company operates, you may even be eligible for grants or government incentives to offset your upfront investment. In many cases the tax savings will help you recoup your investment in just a few years.

5)    Investing in New Products and Product Development

Developing first to market technology products can set your company apart as an industry leader and take competitors years to catch up. A constant improvement of your products can help you better meet customer demands can increase cash flow, as well as profits. Focus on your best-selling products and services to see where you can expand your line. Consider dropping slow turnover products to focus on your best-sellers. Combining product development with increased marketing can boost revenue. A smart market expansion can make future growth much easier and keep your competitors at bay.