Growing a business takes vision, discipline, and – perhaps most importantly – smart investment. But with finite resources and countless opportunities, deciding where to put your money first can be overwhelming. Whether you're looking to boost efficiency, improve customer experience, or prepare for expansion, it all starts with setting the right priorities.
Here’s how to identify the key areas that deserve your investment, and how to make confident, ROI-driven decisions along the way.
1. Staff and talent development
Hire smart. Train better. Retain top talent.
Your people are your greatest asset. Investing in staff doesn't just mean growing your team – it means upskilling, motivating, and aligning them with your long-term goals.
- Focus on hiring and retaining employees who directly contribute to growth, like sales, customer service, and operations.
- Training and mentorship programs can boost productivity and morale while reducing costly turnover.
- Offering flexibility, recognition, and career progression can boost retention, lower recruitment costs, and build loyalty.
- The cost of training often outweighs the cost of constant rehiring and underperformance.
2. Technology and automation
Invest in tools that scale with your business.
Tech upgrades might feel expensive, but inefficient systems cost you more in the long run. Prioritising the right solutions can streamline operations, reduce errors, and free up your team for higher-value tasks.
- Upgrade outdated systems – whether it’s accounting software, a CRM, or a customer portal. Ensure your tech supports, not slows, your processes.
- Use automation for admin-heavy functions like invoicing, reporting, or customer follow-ups to reduce operational drag.
- Focus on functionality and fit, not flashy features. A tool should solve a specific problem or improve an existing process.
- Don’t fall for a brand name — always research alternatives and assess how a solution supports your business goals.
3. Marketing and customer acquisition
You can't sell to people who don’t know you exist.
Marketing is often underfunded in SMEs, but investing in the right channels can create demand, drive traffic, and boost your pipeline.
- Put money behind what’s measurable. Prioritise digital channels like SEO, paid search, social media, and email marketing where Return On Investment (ROI) is trackable.
- A robust CRM system can improve conversion and retention by personalising your customer experience.
- Don’t just cut costs – think ROI. Choosing the cheapest agency or ad package can harm results. Prioritise what drives quality leads.
If you’ve got great products but slow sales, your first investment shouldn’t be in stock – it should be in marketing.
4. Infrastructure and facilities
Make sure your space supports your scale.
Physical operations might not be glamorous, but they’re crucial to efficiency and growth – especially for product-based or service-heavy businesses.
- Optimise what you already have. Small upgrades to layout, storage, or equipment can boost productivity.
- Invest based on bottlenecks. If staff are wasting time due to poor workspace setup, that’s where your money should go.
- Opening a second site? Make sure it complements your delivery zones, staffing needs, or customer base.
Don’t underestimate the impact of a productive, well-equipped working environment.
5. Research and development (R&D)
Stay ahead of competitors with innovation.
To grow, you need to evolve. R&D helps you develop new offerings, improve existing ones, and respond to shifting customer needs.
- Start small, test fast. You don’t need a full R&D department – just a process for piloting and refining ideas.
- Use customer feedback to steer your innovation pipeline.
- Make it measurable. Tie R&D to tangible outcomes, whether it’s a new product line or a cost-saving process.
Don’t just spend – benchmark and monitor
Whatever you invest in, always track performance. Set clear KPIs and review them regularly to ensure your money is driving results. Watch for:
- Cash flow gaps or overspend
- Lagging ROI
- Market or competitor shifts that affect your priorities
Your investment strategy should be flexible but focused. Get it right, and you’ll accelerate growth, reduce waste, and build a business that’s fit for the future.
About the Author
Lewis Miller is Chief Financial Officer of niche technology recruitment firm Nelson Frank. He has over two decades’ worth of experience in a mixture of financial and operational leadership roles in Big 4, UK PLC and Private Equity environments.
These cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit.
If you do not allow these cookies you may not be able to use or see these sharing tools.