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How much of my profit should I put back into my business?
Answered By Editor
Basically, the profit that you get from your
business is considered to be your savings and
may be used to fund other things such as
loans and mortgages. However, in case that
you plan to expand your business, you can
utilize the profit that you have earned.
On how much profit you will allot to your
business, it will depend on the expansion
that you plan for your business. Things such
as additional equipments (in case you are on
a production-type of business) and personnel
should be taken into consideration. After you
have determined these things, you can now
calculate the total cost that you will incur
from such expansion. You can now decide on
the percentage of the profit that will go
back to your business.
keywords: Cash Flow | Cashflow | Profit | Business
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