What Should You Do With Your Cash?

I know...this is a trick question or at least one with a multitude of answers. But what I am talking about is a business that has a significant amount of cash sitting on the sidelines. You can probably tell by my use of the word "sidelines" that I don't think that is where it should be.

It is one thing if you only have enough cash to make your next payroll, but if you have considerably more than that then you should be considering how to best leverage that cash. Here are some things to think about:

Is it time to acquire another business? This could be a direct competitor or a complementary business that over time will help increase your revenue and profitability.

What about stepping up your marketing efforts. We all know that marketing happens over time and in many cases takes some money to make it happen. Marketing when business is slow will help fuel future growth. Marketing when business is booming will help to sustain the boom times.

Adding a salesperson is another great idea. There are a number of excellent sales professionals out in the market today. If you have the cash, you will likely give your new hire an adequate amount of runway to become successful.

The point is don't have your money sitting out of the game when utilizing it will provide your company with the needed growth to flourish during these difficult economic times.