5 ways to use my tax refund to reinvest in my small business

  • Jen Glantz is an entrepreneur and the founder of Bridesmaid for Hire.
  • She plans to use her tax refund this year to reinvest in five aspects of her small business.
  • She spends $100 on Google Ads, $150 on a website redesign, and $80 on a virtual assistant.

When I learned from my accountant that I was going to receive a tax refund of several thousand dollars this year, I wanted to find ways to reinvest it in my business.

Over the past few years, I have used my tax refund for personal expenses such as vacations, home decorating, and helping pay for a wedding celebration.

This year, I will be using part of my refund to help my business grow. My plan is to put half of it aside to invest in other businesses (friend side to real estate) and use the other half to invest in my own business as a solopreneur. Here’s what I’m going to spend my refund on and why.

1. Online courses to learn new skills

It’s always high on my to-do list to make sure I learn new skills and improve my knowledge of emerging industries, technologies, and trends.

I like to schedule time for two or three classes per term, whether it’s two-hour classes or four-week classes. However, some of the courses I want to take can be expensive, ranging from $49 to $3,950.

Although I try to budget for these classes to make sure I can afford them, it helps to use some of my tax refund to cover the bill. I decided to spend $50 of my refund on a more expensive course I want to take.

2. Freelance help

One of the biggest changes I’ve made in the past few years has been to hire ad-hoc freelancers to help with quick jobs or tasks, like a graphic design project or setting up ads on social media platforms.

I plan to take $200 from my tax refund to hire freelancers for three different things. First, I want to hire someone to design an NFT for my business (around $60). I also want to hire someone to help me with social media analytics reports ($35 for the project) and plan to hire a virtual assistant to help me fill in the blanks on tasks I don’t can’t access (about $80 for five hours). I usually use Fiverr or Upwork to find freelancers within my budget, or search for relevant Facebook groups.

3. Announcements

After launching a new newsletter and a card game, I wanted to test Google Ads for the first time to target potential customers who are looking for relevant topics. I decided to run these ads in February on a budget of $10 per day for two weeks. Although the ads were helpful and effective, they ate up my monthly budget.

I plan to use $100 of my refund to help fund these ads to generate more sales and subscribers.

4. Product development

As someone launching a range of services and products, I have found that product development is quite expensive. The problem is that for some of these projects, you have to spend money to create something without any guarantee that it will sell.

To help offset the cost of printing a book I’ll be releasing this summer, I’ll be contributing $50 toward production costs. Although it’s not a lot (the fee is over $1,000), it helps me reduce the amount I have to budget each month.

5. A new website

One of the things I’m actively working on in 2022 is a website redesign. It’s expensive and time-consuming, and for the first time, I hire a professional designer to work with me. Although the cost of the new website is a few thousand dollars, I pay for it in small installments and plan to use $150 of my refund to knock off part of an installment in May.

Although it’s tempting to use my refund for fun personal activities or vacations, I’m hyper-focused on growing and expanding my business this year. I know that every penny I put back into the work behind the scenes will eventually pay off, and I’m happy to be able to use my tax refund to help out.

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