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What % do you reinvest in your company?

Discussion in 'Investments' started by Tagging, Jan 14, 2016.

  1. Tagging

    Tagging Entrepreneur

    What % of your earnings do you reinvest in your company each year?
    Zac Johnson likes this.

  2. Zac Johnson

    Zac Johnson Entrepreneur

    Back when I started in the mid to late 90s, I invested almost everything back into the company. I still lived with my parents at the time, so I had really no living costs back then. Now I have been able to minimize my costs and re-invest back into the company whenever it is needed (advertising / software / solutions), but I'm still cautious on what I'm spending money on and have monthly breakdowns of whats coming in and what's going out.

    Something most people don't realize is that the more you spend each month, the more you have to make in return. Eliminating excess costs is one of the best ways to increase your profit margins -- now matter how minimal some of your costs are.

    Look at your business, see where you need to invest, then consider your options for costs (outsourcing vs premium brands).

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