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Cash flow is the movement of money in and out of the business. It is commonly used in planning the funding requirement of the business, either on a short or long-term basis by ...[Continue]

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 ...[Continue]


How much of my profit should I put back into my business?


Author: Charly Applegate, Cash Flow Expert

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.

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