Do you save your business profit or re-invest it??

[Chibson]

There are many people who rely on their business when it comes to generating profits. This is why it makes sense to utilise your income when it comes to dealing with your daily expenditures in business or even personal expense as well.

Yeah, you can set aside some percentage for your personal expenses and save some percentage for expansion of your business. I think that way you'll be able to maintain your business for a long time.

 

[Smiles20]

I actually do both of the two. In normal circumstances one is advisable to save a little on the business profits and reinvest the rest. The saved profits can be used for personal reasons and expansion of the business.

I believe that this is the best way to go if you want to achieve maximum profitability in your business and at the same time you want to minimise risk. Doing this is going to make you financially buoyant on time.

 

[tyrim88]

That's true, but I'll not advice you to invest all that you have, Investing 40 percentage of your profits with be a good idea, it won't make any sense to invest all you have earned.

That is not what I mean,it is good to invest some very significant and substantial amount of your income from your business especially if it's a new business,you have to take the issue of growth very serious.

 

[Syldan]

Personally I do re invest my income instead of saving it. though both have some importance but re investing can give a better opportunity to have something in return too.

 

[Immilash1]

Investing all your possession could be very risky because it would make you to make emotional decisions and it would latter result in loses. It is good to have backup plans.

That's just tye fact, it will not be wise for you to invest all the you've earned, Investing 40 percentage of what you have is very good, it will help you a lot.

 

[Good-Person]

Yeah, you can set aside some percentage for your personal expenses and save some percentage for expansion of your business. I think that way you'll be able to maintain your business for a long time.

I think that it is very important to set a specific percentage. However, if you are not mentally prepared to re-invest the profits, then you must not do that at all.

 

[Smiles20]

The best thing to do in the business is to reinvest the profit you make so that your business will expand. Business expansion is very important. The mistakes some business owners make is not expanding when they ought to.

I actually see a lot of sense in what you are saying by reinvesting all your profit but then you are taking another significant risk and you are going to start from the beginning of you loose it all.

 

[Emmy]

There is no how a business owner would not remove from business profit because you would have some expenses to cater for in order for business to move forward therefore it would not be easy to re - invest the profit.

 

[Imran_Noori]

Reinvesting your profit is always a good idea but you also need to have some level of savings. The reason is because if the Investment goes wrong you can use your savings to back it up.

You are right, I personally divide my income into three portions, one for investment, one for expenses and the other portion for savings, with this method I plan my income.

 

[Chibson]

I think that it is very important to set a specific percentage. However, if you are not mentally prepared to re-invest the profits, then you must not do that at all.

It is always important not to allow your greed to cloud your sense of reasoning whenever you are making investment. If you're not comfortable reinvesting your profit, then you shouldn't do that.

 

[Shaffy]

It's best to reinvest your profits or dividends especially if you want it to expand without capital from another source. Most people rely on these profits though for their personal needs.

 

[Abigael]

When I start my business, I will prefer reinvesting my profits instead of spending it all. Reinvestment makes your business grow faster as you have enough money to try something new or keep more stock for the future.

 

[Good-Person]

When I start my business, I will prefer reinvesting my profits instead of spending it all. Reinvestment makes your business grow faster as you have enough money to try something new or keep more stock for the future.

Reinvesting the profits is a great thing. However, it must be done properly and you must make sure that you are reinvesting in in a wise manner. Some businesses could be risky and you may lose the money you have earned.

 

[Danny4cash]

For now the profit I make from my business is not really much, so for now I am saving it, but if I actually have enough I will invest so that I can keep making bigger one.

If you want to grow your business, I think the best thing is to reinvest the profit you're making from your business. Saving does not and will not add anything to your business. Though, it depends on individual, to me saving a business profit is not ideal.

 

[Gandiba1]

Well I think this depends on the type of business one is into, if I'm oppurtune to run a small scale business I don't think if there's any reason to reinvest again.

Whereas I have allot of problems to tackle.

 

[Potuse]

I don't think anything can make me to apply for a loan. I hope i never find myself in that situation because i realky hate borrowing. That is why i try my best to save as much as i can.

If you have a big business run and you are very sure that the proceedings from the business is definitely going to settle the loan and you need to expand the business to enhance productivity,i don't see anything wrong in obtaining loan in that regard.

 

[Ononivami1]

There are certain determinant to whether you are going to re-inves the profit you get from a business or not.
Sometimes you would need more capital to expand the business. In that case, you would need to reinvest the profit for business expansion.

 

[Laurentta]

If you have a big business run and you are very sure that the proceedings from the business is definitely going to settle the loan and you need to expand the business to enhance productivity,i don't see anything wrong in obtaining loan in that regard.

In my opinion, in business one can never be too sure of anything. Even if one has a big business with good earnings, something might happen and one's earnings might reduce drastically. This is why I'm so against loans.

 

[Riberet19]

I think that reinvestment is essential for any business that is growing and those that have already grown enough, reinvestment allows the business to continue growing exponentially and organically and makes it stronger and more resilient if done correctly, I think that it is simply of little use save it if its not to create, for example, an emergency fund for the business in cases of need

 

[Chibson]

When I start my business, I will prefer reinvesting my profits instead of spending it all. Reinvestment makes your business grow faster as you have enough money to try something new or keep more stock for the future.

the importance of reinvesting your profit cannot be underestimated. But you must do that with a lot of sense. You can save some percentage and reinvest some percentage in case of any unforeseen circumstance.