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
- Decide what share of profit you'll reinvest vs. take out.
- List your growth options (equipment, hires, marketing, new locations).
- Rank them by expected return and how fast they pay back.
- 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.