How To Treat Your Business Profits?

[Spencer]

If you run a business, you are expected to make profits, whether your business continues to grow or not depends on how you treat that profits, some camp of business owners believes that business profits is for the owner and can be spent the way they like, businesses treated like that goes under the table faster.

How should you treat your business profits then? First of all, you are supposed to separate your business from you, you are an employee to the business, when profits accrued you should pay yourself a part of it and reinvest the rest or save it in a high yielding index like SP500.

 

[Highs]

How you treat your business profits will determine how much your business can grow in the long run. If you are running with the same capital you started with and you keep subtracting all the profit from the start definitely your business will experience little or no changes. If you want to grow or expand, you have to input more. You can half your profits, take part and invest the rest back into your business. You will be surprised how far you will go. There is no way you are not going to spend part of your business profit but don't spend all, learn to invest more.

 

[eLdavis]

How you treat the profit you get from your business is totally up to you. Though it would be wiser to keep some aside and save or invest. Most profits I get from my business I usually save some while I either invest the rest back to the business or on my personal need.

 

[Mika]

Do you want to scale your business, do you want to grow your business, do you want to make your business a big business? Well, in that case, never touch your business profits. Keep on reinvesting your profits in product development, marketing, and business development. However, if you do not have great dreams and do not have desire to become a big business, you can use your business profits for yourself, or even save profits so that you can use it to create another business