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My issue with re-investing or using the profit of the business is the health of the cash flow. When there is a surge of demand then you may need cash (whether in bank or on hand) and you may need to borrow if your extra funds are presently in use. A profit is good to stay in the bank account when not in use.There is no problem in you reinvesting all your profits on a business you are sure would bring returns but i feel its best not to invest everything. You should keep some as a backup plan incase things goes wrong
Exactly you can never tell, anything could happen at anytime, so we need to be prepared. So you dont become stranded or fall into taking loans to sustain the business when the needs ariseMy issue with re-investing or using the profit of the business is the health of the cash flow. When there is a surge of demand then you may need cash (whether in bank or on hand) and you may need to borrow if your extra funds are presently in use. A profit is good to stay in the bank account when not in use.
Reinvesting all your profit in a business start up depend on the type of business you are trying to start, if the business seems promising and has a better furtue, then i see nothing wrong in using your gain for a business start upFor me it’s a Yes. What about you?
Personally, I think it is wise to reinvest all profit earned back into the business at an early stage of the business. It builds growth and provides monetary backings for the business when needed. When starting a business , it's very important for the business to manage it funds and other resources.
Is it wise to Re-invest all your profit as startup?
It sure is a wise decision to reinvest profit to earn more but it's risky to put all your eggs in one basket, what would happen if something were to happen and there is no more investment.For me it’s a Yes. What about you?
Personally, I think it is wise to reinvest all profit earned back into the business at an early stage of the business. It builds growth and provides monetary backings for the business when needed. When starting a business , it's very important for the business to manage it funds and other resources.
Is it wise to Re-invest all your profit as startup?
It is very advisable to re invest your profit as a startup because your business is still in the growth stage. Growing Businesses needs all the money it can get to fund the day to day activities of the business and to ensure proper penetration in the market . Re investing your profit in your own business is just like giving food or energy to your own body. You will only gain from it.
I completely agree with you that there is nothing bad in reinvesting all our property from our business because in terms of business start-ups reinvesting all profit into the business would lead to business growth and expansion.I don't think there is anything bad in re investing all the profit in a business as a start up person. However, if you have other business idea I think you can use your profit to diversify on other business opportunity
Very true, a business that is struggling should think carefully before making such decision so as not to end up loosing everything at a goFor a business that is thriving, it is wise to reinvest the profits back into the business to further grow the business and make more profit. But for a business that is struggling, I don't think it is wise to reinvest the profit.
I guess I would also do that if I am to own one business or the other, because reinvesting the profit into the business would grow the business more and the more the grow it business the more profit you earn at the end.For me it’s a Yes. What about you?
Personally, I think it is wise to reinvest all profit earned back into the business at an early stage of the business. It builds growth and provides monetary backings for the business when needed. When starting a business , it's very important for the business to manage it funds and other resources.
Is it wise to Re-invest all your profit as startup?
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