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Why Should You Reinvest Your Profits?

Last Monday, I mentioned that it’s a good idea to reinvest your profits back into your UK small business. That was only in passing, though. Here’s the detailed version.

Growing your UK small business requires some extra capital.

Of course, you would need additional assets to drive growth. Perhaps you’d need more teammates to handle more customers. If you sell physical products, you would need more stocks of those products. Perhaps you would also need a more powerful internet connection, and some extra enterprise software to automate routine tasks.

In all of this, one thing is for sure. You need money to finance your business expansion.

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Where will that money come from?

Well, you can pitch to investors and venture capitalists. This is the surest way to get that extra capital. Thing is, getting investors to sign on is quite difficult. Not impossible, but really hard.

Thankfully, there is an easier way.

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The best and easiest way to fund your business expansion is to reinvest your profits.

It’s your money. You control it. You get to decide what you’ll do with it. You don’t need to convince anyone else to put money on the table.

Besides, all that time and effort you need to spend pitching to different investors could be used to grow your business. Now I’m not saying that people should no longer bother with finding investors. Doing that is still a good way of getting extra capital.

What I’m saying is that you can use what you have to finance business expansion yourself. That will save you the time and effort of finding investors who are willing to give you money.


What you shouldn’t bother with is buying expensive junk.

Luxury cars and the latest iPhones can wait. Remember the idea of delayed gratification? Put that to heart. That mindset will accelerate your business expansion quite effectively.

Instead, use most of that money to make your business grow! Reinvest your profits to buy that enterprise software, get a faster internet connection, and hire more people. And continue doing the same thing as you make more profit.

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Keep having this growth mindset, and before you know it you have more than enough to buy the things you wanted to buy before.


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Why You Should Reinvest Your Profits
Article Name
Why You Should Reinvest Your Profits
When you're running a UK small business, it's very important to reinvest your profits. This is the big reason why.

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