Prioritize profit over reinvestment from "summary" of Profit First by Mike Michalowicz
When we talk about prioritizing profit over reinvestment, we are essentially focusing on the idea of taking care of ourselves first before we start pouring money back into the business. It may seem counterintuitive to some, especially those who have been taught that the key to business success lies in constant reinvestment and growth. However, the reality is that if we don't take care of our own financial needs first, we run the risk of burning out or even worse, going out of business altogether. By prioritizing profit over reinvestment, we are making a conscious decision to ensure that our businesses are sustainable in the long run. This means setting aside a portion of our revenue for ourselves before we start allocating funds for things like expansion or new equipment. It may feel uncomfortable at first, especially if we are used to plowing all of our profits back into the business, but in the en...
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