Companies are in business to make profits for their owners and their focus is always on that goal. They think of ways to sell as many products, services or both to make themselves profitable and each you’re the goal is to sell more than the year before.
Smart companies look at every area of their business for finding ways to generate revenue. This sometimes includes turning what is typically a cost into a profit center. They also look to find every other way outside of selling products and services to consistently bring profits into the company.
One of the best ways for companies to do this is to make revenue generating investments. For this purpose companies will often hire financial advisors like New York based Michael Briese, to direct them where to spend their money. Here are some ideas for companies to generate additional revenue by investing.
Buying their Corporate Offices, Plants, Warehouses and Storefronts
People are not aware that McDonalds Corporation is one of the largest real estate owners in the country. They typically own the real estate where their stores sit and they will lease the property to the franchisees. There are over 36,000 McDonald’s locations worldwide, of which only 15% are owned and operated by the McDonald’s corporation directly. The rest are franchisee-operated. The company currently owns about 45% of the land and 70% of the buildings at their 36,000+ locations. This approach to setting up their stores bring in billions of dollars in revenue to the company every year. In fact, it is thought that the revenue McDonalds generates from its real estate rivals what is makes from hamburgers.
Real estate is one of the best ideas for companies to generate revenue like Facebook. Whether it is buying the building the company occupies and then selling it at a profit later or buying a larger building and leasing out space to other tenants, companies can generate good and consistent revenue with this strategy.
The stock market has been on the most consistent profit generators over the last few decades. Even with the collapse it occasionally goes through, it still on average offers great returns to those invested. Investing excess cash in individual stocks or mutual funds is another great way for companies to generate additional cash. If you have a dedicated stock expert or broker who can manage your stocks, then buying individual stocks can be a great idea. If not, your company should like to invest through mutual funds that contain a basket of stocks. Returns might not be as high as an individual hot stock, but the risk of losing money is much lower.
How about purchasing an interest in a vendor that services your company. You may know the company well or have a sense of how well the business is doing. A strategic investment might not only pay great returns it can also lower costs for what the company is providing to yours. Car companies do this often. They look to take an interest in seat belt, muffler and other parts manufacturers and find that they are increasing profits even as they order their parts.
Use these strategies for generating more revenue at your business and even fix it if it is busted. If you use them properly you might generate so much revenue that people will think you committed a heist.