Investing the extra profit

[Alexandoy]

I like this idea of investing the extra profit in your business that you are not using. You can perhaps buy blue chip stocks or maybe more quantity of supplies before the price would increase. Stagnant money like what you put in the bank is not earning anything and in the end you even lose in the value because of the cost of money. Investing the extra profit makes sense for small business owners.

If I have a business that is earning pretty good then I would buy vehicles that the employees can use for free. A vehicle can greatly increase the efficiency of the employee particularly the sales people and the marketing guys. They always have a hard time during the rainy season.

 

[sincerem]

When i make profit via my business, some profit is re-invested into my business, while other funds go straight to my reserve funds incase future uncertainty rock the business, that reserve funds can help me a lot to stand the business to continue driving forward. That doesn't mean i can't use some of my business profit to carter for my own needs, i take from it to solve needs cos that's the essence too, of starting a business.

 

[Sotherefore]

sometimes the profit we are making in a business can be used to take care of other activities that is not really the main concern of a business organisation, but I think if you have an extra profit you think will not be needed immediately you can use it to invest in the business to grow it to the standard you expected, I don't see anything wrong with it.

 

[Kingsley]

Reinvesting all your profit might sound like a very good idea but in the real like of it I wouldn't subscribe to that is a very brilliant idea, because life is filled with uncertainties that is why people save. Saving comes in as a wise move when the profits in setting in. This is because if anything should go run one will have a back up.

 

[Mika]

If you have a stable income source and even emergency funds that you can use when you are in need, I think reinvesting your profits is a good idea. For example, if you have 50 shares in a company and if you earn x amount as a bonus for your 50 shares, you can invest you X amount to buy more shares and build your share portfolio.