End of Year Investments
The end of the fiscal year is almost here and that means it might be a good opportunity to make some investments in your business!
Do you have extra profits from this year sitting on your books? Do you also have purchases you’ll need to make in the winter or spring to get the next season going?
Instead of paying yourself extra income (that will be taxed) or leaving profits in your business bank account as the year turns over (more profit and less cost), you might consider making any purchases or investments you know you’ll need to make in the not too distant future, now, before the end of 2023.
Put that money to work for you.
We ask oursleves: Do we have money left? Is there something we should put it into to help us grow?
In the beginning, these end of year investments were very small. There wasn’t much money we didn’t need to spend on labor/winter salaries. So those investments were things like seeds, bulbs, shrub liners, light fixtures for our grow room, etc. Now we bigger goals and projects in mind for the future.
Here are some end of year purchases you might consider as a farmer-florist.
Seeds, bulbs, shrubs.
Pots, trays, or other growing supplies.
Soil medium, compost.
Hoop house kit.
A piece of equipment like a mower, snowblower, or tiller or tractor, etc.
Technology needs— new business laptop, camera, phone, etc.
A vehicle.
No profits right now? No Problem
If you don’t have any profits to show for your company right now, that’s OK, too. Many growers have to use what they save up during busy times to pay for fall expenses and to help them get through the winter months.
If you want to grow your business, take a look at how much profit you’re making and when in the year is the right time for investing in your company. When are you most comfortable in your earnings?
What if You don’t want to grow your business?
Does your business need to make a profit? No. You need to be able to cover all your costs (one of them being the salary you want to earn), but profits that would feed the growth of a company aren’t a necessity. You don’t HAVE to GROW your business bigger. But keep in mind, unexpected costs come up for businesses just like the do for homeowners. In this case, make sure that your anticipated costs include a buffer for things that could go wrong, like a mower that needs to be replaced, etc.
When in doubt: Consult an accountant.
Not sure what your best move is for your money or what you’d like to do with it. Ask an expert.