The 3 clever ways to make the most of your tax return
Taxes.
That word alone is enough to cause a stress attack for many people. The sheer amount of paperwork, gathering things together, all for the sake of determining if the taxes you paid this year were too much, too little, or just right. Sometimes, it feels like wizardry… inputting everything into TurboTax and hoping the result that comes out on the other side is what you actually hoped for.
But you know what is equally magical?
Tax refunds.
We all know the satisfying feeling of receiving our tax refund and eagerly planning how we’re going to use this “bonus money”! (I know it’s not technically free money, but still). A tax refund is a great opportunity for small business owners to finally invest in their businesses and can be a critical step to their long-term success.
Notice I used the word “investment”. That’s right—we’re not going to spend your tax refund on that trendy $350 cross-legged office chair (although you do you), we’re going to invest your money in a way that earns your business more money in the long run.
In this post, we’re sharing some clever ways to spend your tax return dollars, and how your investment in each of these areas will help your business grow and succeed in the long term.
1. Invest in market research
Let’s have an honest moment here: for most entrepreneurs, the definition of “conducting market research” involves scrolling a few of your friends’ Instagram profiles and calling it a day.
I get it. While I love researching anything and everything, not everyone enjoys the process of mining the depths of the internet to gather a robust portrayal of their target audience.
Market research is a key component of your brand. By understanding your target audience, you can not only know what products or services will provide the most value to your audience, but also know how to create a brand that resonates with them and meets their needs. A solid grasp on your market can even inform your pricing strategy and can show if it’s time for your business to make a pivot in a new direction.
One of the biggest branding mistakes entrepreneurs make is neglecting market research. Perhaps they feel they are the target audience, so there’s no need to spend time and effort in further research, or perhaps they’re relying on their years of experience with customers and clients to inform marketing and branding efforts. However, understanding not only the who’s and what’s of your audience but also their why’s can not only impact your branding and marketing, but significant tactical business decisions.
If any of this either makes you want to fall asleep or causes you to think, “My time could be better spent working on other things in the business,” you may want to think about investing in a market research company who can conduct those activities on your behalf and present you the findings so that you can make the downstream decisions. While this route can be taken by businesses of any size, if you need a more budget-friendly approach, consider asking someone on your team who is passionate about research to spend a few days conducting an in-depth look into your target audience or finding an independent marketing agency that might offer a simpler market research approach.
2. Invest in your digital presence
A brand that neglects its digital presence is like a doctor who operates out of a seedy back alley. While Dr. So-and-So might come highly recommended by friends and family, just seeing the piles of trash outside the office and the peeling, moldy wallpaper in the waiting room is enough to have you doubting your loved ones’ sanity and running out the door. The strength of the word-of-mouth recommendation might be enough to convince you to give this doctor a chance, but their office’s physical presence undermines your trust and confidence.
In today’s online era, having a strong digital presence is essential to establishing credibility and trust.
First off, what is “digital presence”? While the term is fairly broad, digital presence the way you market your brand online in the hopes of converting potential leads into customers. That digital presence could be as little as just a social media page, or something as large as a multi-faceted online footprint that spans various social media sites, an independently hosted website, an e-mail list… the list could go on and on!
Or in other words, your digital presence is how your brand shows up online. It’s often the first impression that customers have of your business, so it’s important to make sure that it accurately represents your brand and speaks to the needs of your target audience.
Investing in your digital presence can have huge returns for your time and money because it can be a relatively affordable way to drastically increase your sales. An improved online presence can help actually sell your products or services for you as your customers or clients begin to know, like, and trust your brand based on the impression and experience they have with you online. We really do judge books by their covers.
Here are two impactful ways to invest in your digital presence:
Self-Service Platforms
If you love a good DIY and feel confident enough to handle things yourself, you may want to invest in a subscription platform that will optimize your social media marketing. One of the more annoying things (in my opinion) is posting social media on all the various platforms from my phone. Using a service like Later allows me to schedule posts across various platforms all in one click, saving me time and hassle switching between apps. Another option is a subscription to Canva’s premium service, which includes additional fonts, illustrations, and even pre-made designs that can elevate your posting game above and beyond their free options.
Digital Marketing Agencies
If you’re ready to spend more time working on your business and less time navigating the hassle of digital marketing, you may want to hand off this process entirely to a professional (who will use their expertise to make an even bigger impact your best DIY efforts). Many digital marketing agencies are multidisciplinary, so they can not only handle your brand marketing strategy but also ongoing execution of writing posts, creating graphics, sharing stories, and more. The investment is sure to free up your time and save you money as you see big results from their efforts.
Here are some of our trusted favorite partners for online marketing and digital presence:
3. Invest in your brand identity
Investing your tax return on your brand identity is a smart move for any small business owner looking to refresh their brand and create a strong image that accurately represents their business. Brand identity is the visual representation of your business, including elements such as your logo, color scheme, typography, and overall design aesthetic. A strong brand identity helps establish brand recognition, build customer trust, and differentiate your business from competitors.
A strong brand identity helps establish brand recognition, build customer trust, and differentiate your business from competitors.
Perhaps your logo was created at a time when your business was much smaller than it is now and it looks less professional than how you’d like to appear. Or perhaps you’ve read our blog post on how to know it’s time for a rebrand and you’re realizing that your brand is no longer serving your business’s best interests. Whether you’re looking to establish your business (or yourself) as a leader in your field or build your brand’s awareness and recognition in a new market, investing in a brand identity is a powerful tool that yields high rewards on your initial investment.
At Author, we’ve seen the transformative power of investing in brand strategy and brand visual identity. Our clients have doubled their revenue, tripled their sales, and even in one case, made back over 10x the initial investment within weeks.
Investing in your branding is a big deal, no matter the size of your business. That’s why we offer a variety of brand strategy and design packages, from fully-custom branding services to budget-friendly brand intensives and even semi-custom branding kits that deliver a professional brand in just two weeks. Our job is to take the guesswork out of creating a cohesive brand strategy and identity and allow you to focus on what you do best.
As a small business owner, investing your tax return wisely is essential—especially when every dollar counts. While there are many different areas you could invest in, improving your branding in any of the areas mentioned above should be at the top of your list. Don’t let tax season pass you by without considering how you can use your tax return dollars to invest in your business’s future success. We would love to have the chance to write your brand’s story with you!
