8 things entrepreneurs can do with ERC money

Cash bonuses or 401(k) contributions are a great way to reward your employees for their hard work. These financial rewards can be made possible with the money you receive from your ERC.

No matter how big or small the bonus, being generous with your employees can encourage them to keep up the excellent work. Plus, it can boost company morale, make employees feel valued, and help you reduce employee turnover.

2. BUILD YOUR BENEFITS PROGRAM

Benefits programs are one of the best ways to make employees feel valued. They are also a great way to increase employee retention and hire new talent.

A company with a solid benefits program will be significantly more attractive than one without. With the extra money from your ERC, it may be in your best interest to build on your already existing benefits program.

Consider adding more paid vacations, childcare perks, and fitness memberships on top of any medical, disability, and life insurance policies you may have.

3. USE THE ERC MONEY TO INVEST IN NEW EQUIPMENT

Extra cash flow can be a good time to invest in new equipment for your business. By maximizing your capital expenditures, you can also move into an even more profitable future.

Plus, making large purchases can be helpful when tax season rolls around because they can increase your business deductions.

Consider what equipment will help you, your business and your employees continue to thrive in the future. With extra cash flow, you can ensure that your next year is even more profitable than the last.

4. INVEST IN REAL ESTATE

Buying new real estate can help you grow your sales for years to come. Just like buying new equipment, investing in real estate can help your business move forward. In addition, if you have enough money to purchase an asset without financing, now is the ideal time to make a major investment.

Consider how much your business will benefit from more real estate. Sometimes putting a large sum of money back into your business is the best way to make more money long into the future.

5. USE THE ERC MONEY TO ELIMINATE DEBT

Being in debt can often have negative consequences for you and your business. The longer it takes to pay off debt, the more interest you accrue. If you find yourself with extra cash flow, this could be an ideal time to pay off your debts and lower your debt-to-equity ratio.

On the other hand, having specific debts can sometimes be a smart business move. Whether going into debt makes sense depends on your company’s overall strategy and business model. The most important aspect of having or paying off debt is making sure you maintain control over the money you owe.

6. BUILD MONEY RESERVES

Take the extra money you received from your ERC and create a cash buffer or piggy bank for emergencies. Putting money aside can be a lifeline if something unexpected happens to your company, employees or the market.

It’s always a good idea to have an emergency fund on hand. By keeping money in a safe account, you can be prepared for any hardships that may arise in the future.

7. LAUNCH A NEW PRODUCT WITH THE ERC MONEY

By launching a new product with the money you receive from the employee retention credit, you can make more money for years to come. Spending some of your money on launching a new product can be an excellent business investment.

To launch a new product, a business owner often has to hire new employees, invest in equipment, and run new marketing campaigns. Usually this requires a lot of overhead cash flow. If you’ve received the ERC, now might be the perfect time to get a new project or idea off the ground.

8. ACQUIRING ANOTHER BUSINESS WITH THE ERC MONEY

If there’s another business that you think would fit into your pre-existing business, now might be a good time to make a move. With the ERC money you received, consider making an offer for the new company that aligns with your current business ventures.

While acquiring a new business can cost a lot of money, it can significantly increase your market share. In addition, with the ERC comes a cash flow that can be unmatched for years to come. Taking a risk with the money you get from the tax credit can change the future of your business.

EMPLOYEE BENEFITS CONSULTING

If your company has received the ERC and you have some extra cash flow, now is the perfect time to consider getting it advice on employment conditions. LG’s benefits advisory services make it easier to attract high caliber employees. What’s more, consulting in the field of employee benefits can save you money.

LG Resources is also one recruitment agency that helps connect talent with employers in the warehousing, manufacturing, transportation, administration and technology industries. So whether you’re looking for full-time, part-time, temps or other staffing solutions, LG Resources can help.

Get in touch today to see how our experienced professionals can help you positively channel ERC money.