Invest profit back into the business wisely from "summary" of Profit First by Mike Michalowicz
When your business starts making a profit, it can be tempting to immediately reinvest that money back into the business. After all, the more you invest, the more you can grow, right? Well, not necessarily. The key is to invest your profits back into the business wisely. One mistake many entrepreneurs make is thinking that all profits should be reinvested into the business. This can lead to a cycle of never actually seeing any of the profits for yourself. Instead, you need to strike a balance between reinvesting in the business and rewarding yourself for your hard work. So, how do you know how much to reinvest and how much to keep for yourself? The Profit First method recommends setting up separate accounts for different purposes, including a profit account. By allocating a percentage of your profits t...
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