How to Invest Profit Back into Your Business

The importance of investing in your business to generate growth and increase your future profit.  Invest profit back into your business starting today.

Money growing in a garden representing investing profit into your business As a new business owner, it is tempting, when you finally turn a profit, to stuff all of that money directly in your wallet. Well, be patient, here are some reasons why delaying your gratification will really 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 the point where it is profitable can be a grueling process, working extra long hours, scraping pennies together, and working harder than anybody else for zero reward. So, when the light at the end of the tunnel comes nearer, all expenses and everyone is paid and, what is this? There is still money left over! You think finally my work has paid off and, it has, but if you want to continue to increase that profit, it is extremely important to choose your next move correctly. Before you cash out, remember it takes money to make money,therefore investing some of that money back into your business will be an invaluable decision. Of course, you have financial responsibilities of your own, you absolutely need an income too, so find the right balance. There is no exact number but I have found that 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. But invest that $30,000 into building and advertising your company, that number will increase as your company grows where pocketing that money halts your growth, you will continue to only 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 but 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 really 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.


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.

Building your company

Invest in your company’s growth, try to anticipate the future a little bit. Look at what you will need to develop and expand if your company does start to generate more business, whether it is hiring new employees, renting new office space, or finding another company to team up with. Envision the change you want to see and know what your company’s growth will demand for optimal performance. Always calculate the risks of your investments and choose which options are most advantageous for your company at the time. Do your homework, make a plan for future investments, move forward when you are comfortable to make them, and watch your company grow! Check out America's Best Bookkeepers About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.