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When you want to really turbo-charge your business you have to reinvest a certain amount of your profits back into the business. Invest in automation, in plant, in marketing and in employees to leverage you more.
When you invest look out to see if you can leverage the capital just as well as when the business was brand new.
Set aside a fixed percentage of profits or revenue—say 15% of profits—that you consistently set aside for re–investing. You may even want to move the money into a ‘business investment account’. Doing so will open your eyes before you invest.
Before you decide to invest, sit down and calculate your expected return on investment. If you invest in a marketing campaign, how many new leads must it generate, and in turn what will that mean for sales?
If you hire an admin person, is the consequence that your time is freed up so you can bill more hours?
Either way calculating your ROI (return on investment) is a healthy exercise.
