Just won 10 000 for my business project... dont know how to invest that money

[Samy Bazizi]

Hi fastlaners

So we just won a 10 000 $ prize given by our university for my business project, which i started a few months ago. Its the first time I win something and the first money I see after months and months of hard work and failed projects. I know its not a lot, but i want to invest it smartly.

So basically my business is selling Led lights and products added with an installation and decoration service. We already have a website. We dont need stocks as we buy the products to the supplier after the client has made an order, so all we need is a small working capital (small because the client pays a 35% deposit when placing the order, that we use to pay the supplier).

Here are some of the things I've considered investing in:
-Internet marketing
-Paying a company to find us the best and most reliable Led supplier in China
-Nice suits

Another thing I could do with this money is spending it on a trip to China so we can find some new products out there and go to fairs and trade shows, as well as visiting the country and having some well deserved vacations.

So what do you guys think? I am young, have no work or business experience and have no idea where people usually invest their money.

Thank you

 

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[ZCP]

What level of sales so far?

What do your P&L, Balance Sheet, Statement of Cashflows tell you?

How robust is your 'system'? Can it scale?

By 'system', am talking about software / CRM / ERP / procedures / training / infrastructure / etc. ..... my guess is that is where the $10k goes......

 

[Samy Bazizi]

We are working with our first client, an 8000$ contract, and we are almost done.

How we proceed is we look out for clients by contacting them directly, we propose them designs and decoration ideas (made by our interior designer expert), then we order the products, we install them and the clients pay. We don't really need software, our website is almost like a business card, it's only there to present our company. CRM, ERP, P&L, Balance sheet, statement of cashflows... these terms are unknown to me lol... as I said, this is my first business experience and what I learn at school I don't really use it in my business.

 

[JoeB]

If you have the product/logistics in place I would use it to test different methods of paid advertising to increase sales.

 

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[healthstatus]

If you don't know exactly what to spend the money on, then sit on it. Growing a business is expensive, if you keep getting new clients there will be a point where someone either wants you to extend terms to them and you will need the cash to finance the project, or an opportunity will arise. I have often said I will never do a project without at least a 50% deposit, then a LARGE pharmaceutical company showed up with a 6 figure P.O. but wanted net 90 day terms. Without some cash in the bank I wouldn't have been able to do it.

 

[H. Palmer]

10,000 is not an amount you should worry about too much what to do with. Put it in the bank.

In the stage you are in now it's best to focus on developing your skills and your network to grow your company.

 

[Bila]

No trips and no nice suits ( hope it was a joke
Sit on 80 % of it.....try strategies with the other 20 % and see results and then invest another 20 %...etc

 

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[randomnumber314]

If you're working on a $8k contract you should know by now that $10k comes and goes very quickly. Sit on it until there's a glaringly good reason to spend it.

 

[Twiizlar]

@Samy Bazizi do you mind sharing what niche you market you led installation business in . And are you focusing on one area or across a whole country?

 

[Samy Bazizi]

@Samy Bazizi do you mind sharing what niche you market you led installation business in . And are you focusing on one area or across a whole country?

I am focusing on my city (Montreal) so far but I would definitely want to expand across the country! We don't have a certain niche, we are focusing on every commercial (mainly restaurants, clubs, bars, etc...) that needs a modern light decoration. There is so many led products that we can have different types of clients.

Also, isn't it at the start of a new business that we need the most investment? If we don't need money right now, why would we need money later on? I am just wondering what kind of cost could come when growing.

 

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[randomnumber314]

I am just wondering what kind of cost could come when growing.

That's exactly why you should sit on the cash, you don't know what shit will unfold in the coming months. In Q3 you'll want to sit down with an accountant and decide how to spend your extra cash.