How should I reinvest my profits?
Anna had a question from last week, and Anna's question was, she sending up a manufacturing shop and as she starts to make some profit she wants to know how she should reinvest her profit in her business. And that's a general question and so I can only give you a general answer, but you should put the profit where you most want it - where it will do the most good.
And the two places I can think of that will do the most good would be to put one part in your pocket, because you're doing this to make some money. So you should decide how much of the profit that I make from this business should go into my wallet or my pocket so I could do the things that I want with money. And then the second thing is, how much of this money I'm making in my business should I put back into the business to grow the business? And that depends on your goals.
So the only way you can really determine that is to come up with a business plan and have that business plan tell you what it is you're trying to accomplish. So if you want to double sales in one year and it requires that you get twice as much infrastructure, you can figure out what the cost of that is and you can say, OK, I need to put enough money aside to build the infrastructure I need to double my sales. I Hope this gives you a little tiny place to start. And, you know, hopefully that will get you going a little bit. And then you can ask me another follow-up question if you still have some concerns about it.
