Should you invest all your profits back into the business?

[Immilash1]

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.

The biggest mistake you can make is reinvesting all the profits you have made,a lot of people have failed because they don't know the right thing to do.

 

[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.

 

[Abigael]

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.

That is a great advice. Especially when you are investing in a site that you don't trust fully. It is best to withdraw your money rather than reinvest it and risk losing it all.

 

[Syldan]

Actually I think it depends on the kind of new business you want to invest in or start.

Personally I wont advise anyone to takes such kind of risk even though risk is inevitable and we most faced it at any time but that will be unwisely.
you can invest some part of your income not all.

 

[Planbizzle]

Reinvesting your earnings may be necessary to accomplish your objectives if you want to expand your product line, increase market share, or grow your company. It might not be a good idea to reinvest all of your earnings if your company has debt, is running on tight margins, or has other financial commitments.

 

[Abasiama40]

It recommends that business owners allocate 50% of their profits to paying themselves, 30% to taxes, and 20% for reinvesting in the business. This model give business owners a reasonable amount of capital to enjoy, prepares them for future tax surprises and still account for reinvestment.

 

[Syldan]

Well I think it depends on the kind of business you have and also the growth status of the business.

I think to some extent, it won't be a good idea to invest all your resources into a business.

 

[Robert90]

Reinvesting all revenues back into a business is a decision that depends on a variety of factors. Taking profits first is recommended by some experts, while others advocate taking profits first and reinvesting the remaining funds to keep the business growing. It's critical to strike a balance between making future investments in the business and retaining a solid cash flow.

 

[joy101]

For me i don't really think it is encouraging to reinvest all the profit back to the business, you can invest part of it in the business and also to remain some because you can use it to do other things.

 

[eenya001]

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.

Withdrawing your seed or otherwise know as capital can help to keep your mind at ease, and you can go on the investment with a clear mind instead of overthinking.

 

[Immilash1]

No that's not wise, if you really know what you are doing you are not expected to invest all you've got, trading or business is very risky you have to be very careful.

 

[Syldan]

Personally I think it will be a pretty bad idea to invest all your income into the business.

The question is, what if the business didn't worked out as you wanted or expected.

 

[Kane]

If your strategy is to remain in the business for a long term and want to build a big business, it is advisable to continue investing your profits, it is better to invest your profit rather tan put more money form your pockets.

 

[Danny4cash]

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.

You actually made a good point. Even though I support investing profit to a business, I don't agree with reinvesting all your profit to a business, especially if you don't have a job. As a business, you need to take care of yourself.

 

[Immilash1]

You actually made a good point. Even though I support investing profit to a business, I don't agree with reinvesting all your profit to a business, especially if you don't have a job. As a business, you need to take care of yourself.

That's exactly the point, investing all the amount of money you have is not a good idea, it's very risky, I'll not advice you to invest all the amount of money you have.

 

[Shigobad20201]

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.

its called "reserve fund " , its the money you decided to be saving and not touch unless you have an emergency ,for example if you are making $25 profit in a month and you are spending $20 , the remaining $5 should be in your savings .
So that when you have problem with your initial investment or you are scammed , you will have something to come back to .

 

[Immilash1]

its called "reserve fund " , its the money you decided to be saving and not touch unless you have an emergency ,for example if you are making $25 profit in a month and you are spending $20 , the remaining $5 should be in your savings .
So that when you have problem with your initial investment or you are scammed , you will have something to come back to .

Wow that's really good, this will help you in terms of savings, if you are a type that spend a lot of money you can decide to use this method,I'm very sure it will help you a lot.

 

[Syldan]

Actually investing all your profit into a new business, is really a bad idea even though sometimes it depends on the kind of business which I believe there are some business that has less level of risk.

 

[Trey]

As a commited business person, you won't even mind reinvesting all your profits. That's the sort of sacrifice and entrepreneurs make for their businesses to grow.

 

[Chibson]

if I have a business I wouldn't invest all my profit into the business instead I will invest some percentage and save some percentage for future occurrences. Having a reserve saving for your business is very necessary as a backup

As a commited business person, you won't even mind reinvesting all your profits. That's the sort of sacrifice and entrepreneurs make for their businesses to grow.

That may be a very good option in some cases but in my own perspective you should not invest all the profit.
It is better for you to keep some certain percentage as reserve funds in case anything goes wrong with the business on the long run.