Should you invest all your profits back into the business?

[Kennysplash]

When you start doing your business at first you are going to see some profits. Do you think it is best for a business person to invest back all the profits into the business? Personally I don’t think this is a good idea. No matter how promising a business can be you should set aside some funds in your savings. Besides you need to survive so there is no way you can invest all of your profits without having some to take care of yourself.

 

[Abigael]

Reinvesting all the profits into your business is a great thing as it makes the business grow faster. But it can only be possible if you have another source of income. That way, you can afford your needs and don't have to depend on what you earn from your business.

 

[eLdavis]

At the early stage, it is important you do this. The business is still very tender so you have to put back most of your earnings back again as investment. It would get to a time where the business must have grown to a particular level first, then you can spend on other things as well.

 

[Good-Person]

At the early stage, it is important you do this. The business is still very tender so you have to put back most of your earnings back again as investment. It would get to a time where the business must have grown to a particular level first, then you can spend on other things as well.

The decision to reinvest profits depend a lot on the kind of business and the profitability. I would have invested my life savings in bitcoin if I had any idea that bitcoin would be so successful.

 

[Laurentta]

No, it's not the best for a business person to invest back all the profits into the business. One should just reinvest part of the profit and save the rest for emergencies that could come up.

 

[eenya001]

this actually depends on the kind of business you are into and how profitable the business is, if it is highly profitable then you can go ahead and invest all of the money you have made.

 

[Mayorla]

Yes, It is important to invest all your profits back to the business.
You might not actually invest 100 percent of all you profit into your business.
You can easily invest 70 percent of your profits back into the business.

 

[Riberet19]

Yes, It is important to invest all your profits back to the business.
You might not actually invest 100 percent of all you profit into your business.
You can easily invest 70 percent of your profits back into the business.

Exactly, reinvestment is one of the best ways to grow your business exponentially and also have the possibility of expanding it over time, you say it well you do not need to do it with 100% of the profits, since you also need to take profits to your pockets, but a large part could go to reinvestment and would be a pretty smart idea on the part of the entrepreneur / owner.

 

[Mayorla]

Exactly, reinvestment is one of the best ways to grow your business exponentially and also have the possibility of expanding it over time, you say it well you do not need to do it with 100% of the profits, since you also need to take profits to your pockets, but a large part could go to reinvestment and would be a pretty smart idea on the part of the entrepreneur / owner.

Yes, Reinvestment is a great way to grow your business like you have said.
You can even invest half of the profit to another venture or business.
Yes, It is a smart idea to reinvest I believe. You can easily expand your business more from it.

 

[Ernestnari]

I am against investing all the profits into a business. For God's sake, you as an entrepreneur has a life to live and you can't function as a business man of you are not living well. It is important to pay yourself before reinvesting the profits.

 

[Jonaville1]

I am against investing all the profits into a business. For God's sake, you as an entrepreneur has a life to live and you can't function as a business man of you are not living well. It is important to pay yourself before reinvesting the profits.

I would not like to reinvest all my profit back into my business. It is vety much risky. The only thing I can do is to reinvest a little and save up a little too. I will lose money when the business shuts down.

 

[Kane]

Depends on your priorities. Some people like to get back the seed money as soon as possible and only reinvest the profits after they have taken out the seed money.

 

[Ernestnari]

I would not like to reinvest all my profit back into my business. It is vety much risky. The only thing I can do is to reinvest a little and save up a little too. I will lose money when the business shuts down.

I am not even talking about the risk of reinvesting now. What I am even talking about is the entrepreneur taking care of his own self. Unless you are living with your parents and they foot the bills, you have to pay bills. You must set aside a part of your profits as your own salary.

 

[Immilash1]

No I don't think if that's a good idea, investing some percentage of your profits will be a good idea but investing the all of it is not a good idea, Based on my own view.

 

[Jonaville1]

I am not even talking about the risk of reinvesting now. What I am even talking about is the entrepreneur taking care of his own self. Unless you are living with your parents and they foot the bills, you have to pay bills. You must set aside a part of your profits as your own salary.

That is true
Everyone has one bill or the other to pay so it does not make sense to reinvest all the money that you made back to your business. How are you going to pay your bills?

 

[Trey]

If you have a job and running a business at the same time, it is safe for you to invest back all your profits into your business. That's because you would be surviving on your job.

 

[Immilash1]

If you have a job and running a business at the same time, it is safe for you to invest back all your profits into your business. That's because you would be surviving on your job.

That's exactly it, but sometimes I think we need to have a help, doing all that alone might not be a good idea, if you a busy type I think having a help is very important, what do you think?

 

[Shigobad20201]

As a good entrepreneur, having a reserve fund is very important for the survival of your business, because there are going to be trying times when you will need something to fall back to , so i don't normally re-invest all my profit into a business.

 

[Immilash1]

As a good entrepreneur, having a reserve fund is very important for the survival of your business, because there are going to be trying times when you will need something to fall back to , so i don't normally re-invest all my profit into a business.

Well I don't really know what's reverse funds, as a matter of fact this my first time hearing about it, I'll much appreciate it if you explain to me what really it is.

 

[Kane]

If you are looking for financial safety, you should withdraw your seed money as soon as you can and then only invest your profits. This will help you recover your investment.