Document a reinvestment or expansion plan (where profit is deployed, with targets)

Profit that just sits there doesn't build a bigger business. A financial strategy for reinvestment decides — on purpose — how much profit goes back into growth, what gets funded first, and what return you expect.

Do this

  1. Decide what share of profit you'll reinvest vs. take out.
  2. List your growth options (equipment, hires, marketing, new locations).
  3. Rank them by expected return and how fast they pay back.
  4. Fund the top one or two and measure the result.

Reinvestment Strategy Frame

1. Decide the split: e.g. reinvest 50% of profit, pay yourself 50%

2. List growth bets and what each could return: • More marketing → more leads → $? • New equipment → more capacity → $? • Key hire → more jobs delivered → $?

3. Rank by payback speed and confidence, fund the top 1-2.

4. Measure: did the bet return more than it cost? Reinvest in what works.

More Bizer Academy lessons

Bizer
Loading…