How to Invest Profit Back into Your Business

As a new business owner, when you finally turn a profit, you are tempted to stuff all of that money directly in your wallet. Well, be patient, here are some reasons why delaying your gratification will pay off!  Invest profit into your business with these simple guidelines.


How much of my profit should I be reinvesting into my company; I need personal income too!

Building your company to profitable can be a grueling process. Working extra-long hours, scraping pennies together, and working harder than anybody else for little reward. Once a profit is achieved, you think my work has paid off and, it has, but if you want to continue to increase that profit, be careful to choose your next money move wisely. Before you cash out, remember it takes money to make money, investing some of that money back into your business will be an invaluable decision. Of course, you have financial responsibilities of your own, and you need an income, too, so find the right balance. Check out America's Best Bookkeepers


Reinvesting about 50% of profits will get you moving in the right direction. This means if your net profit is $60,000, then you can afford to invest $30,000 into your company and, now you have a modest $30,000 a year salary. Invest that $30,000 into the building and advertising your company, that number will increase as your company grows. Pocketing that money halts your growth, you will continue to generate a net profit of $60,000. Let’s say we invest $30,000, and because we were able to improve our company, next year your net profit is $120,000, again we invest half. Still, we are pocketing that $60,000 that we refrained from keeping last year but with the opportunity to double our profits again!


Invest in my business, sure, but where? Here are three areas you can start with

We have established that it takes money to make money, but how can be a difficult question that depends on your business and how much time and money you have to spend. Three options that are sure to be useful are; advertising, get your name out there show the world who you are; invest in increasing your skill-set, you and your employees can benefit from new coaching and experiences; build your company to its potential, don’t underestimate your company, invest in its growth. Check out America's Best Bookkeepers



There are tons of affordable ways to advertise your company and, with the world wide web, a lot of places to do it!

  • Making your company a website.

If you don’t have a website, this is a great way to get across information about you and your services in a place that is easy for your potential clients to find and access.

  • Social Media.

Use social media to post your information.  This can even be free, use Facebook, Twitter, Instagram.

  • Make a commercial

You can show this commercial online for free, post it to your website or YouTube.


Increasing your skills

By strengthening your and your team’s knowledge and skills, you add value to your service. Invest in certifications related to your service, have someone come in to teach you how to advertise, have an expert teach you how to maintain your website, attend conferences. This will take time and money, but you will have a new skill set that will be continuously useful, you are never done learning. Check out America's Best Bookkeepers


Building your company

Invest in your company’s growth; look at what you will need to develop and expand if your company does start to generate more business. Hire new employees, rent new office space, or find another company to team up with. Envision the change you want to see and know what your company’s growth will demand optimal performance. Always calculate the risks of your investments and choose which options are most helpful for your company at the time. Do your homework, plan for future investments, move forward when you are comfortable with making them, and watch your company grow!

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