Reinvestment – The Profit Mulplier

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   Roaring Studios


The first profit is always the topmost milestone for an entrepreneur. It gives the business a new lease of life and motivation to work better but this is the also the point where you get to choose between being a smart businessperson or an ordinary one. While the profit earned calls for a celebration, it also demands that the right decision is made; the decision to invest the money into the right place. Surveys show that the right approach is always to reinvest a portion of your profits back into your business. This might seem unnecessary when there’s the luring option of popping a well-deserved champagne or finally taking that long-pending vacation. However, this small sacrifice will help you reap bigger profits in the long run.

Let’s move on to the next phase of the decision – HOW? Once you’ve decided to reinvest your money, it is important to segregate the amount to be used for different purpose. The thumb rule for any investment is universal–DO NOT PUT YOUR EGGS INTO ONE BASKET. To put it into simple words, diversify your money. Nobody understands your business better than you; thus, there’s nobody else who could tell you where is more fuel required to make the run smoother. However, there’re some basic factors one must not ignore while deciding upon reinvestment. These are :

OPERATIONS & INFRASTRUCTURE: This is a no-brainer. In order to grow, one must have the types of equipment required to run the business properly. This is the time for you to stop managing and thoughtfully invest in a product – be it hardware or a software licensing, which is essentially needed. This small step will only make your business process simpler and better.

EMPLOYEES & TEAM: You’re what you are because of your team. Their proficiency and capability help you achieve your goals. However, at the pace this world is running, proficiency becomes outdated at lightning speed. In order to maintain the edge of your team, it is very important to keep yourself updated. After your success is celebrated, invest some time and money in polishing your skills to face bigger challenges. Your teams’ abilities reflect in your work. Help them gain their full potential and more.

MARKETING & PR: There’s one fact you cannot deny – the competition is overgrowing. This is the age of information overflow and if one doesn’t make efforts to remain visible and noticed, there’s a complete assurance that your business will be lost in translation. Hence, however frivolous it may sound, it is very important to spend on marketing the business on various platforms and maintain good public relation. Ensure that you have at least one resource completely dedicated for this purpose.

The nerve of your business depends on your reflex actions.

Act wise and invest prudently!