Balancing profit, reinvestment, and business growth are probably one of the hardest things to do when you run a business. You have to tip the scales in favour of putting the puzzle pieces together to get the business that you want. Growing your business should be towards a way that is sustainable for your life, and is aligned with your values. Make sure that you are comfortable and happy with your direction because it is something that you’re going to be working towards each day. It will dictate the actions that you will take and the success and results that you will have.
It means taking any profit and putting it back into your business for something that you expect will deliver a positive return. If you are reinvesting in your business, make sure that you do it strategically. Assess what you could invest in your business in order to generate more money.
Planning out Rapid Growth Business
You need to make sure it is achievable and sustainable. When you map out what you want your revenue growth to look like, identify what systems or processes are to be changed, or which actions are to be done by you or your team periodically, while still making sure that there is still profit.
There can be seasons in your business where you decide to forgo a solid take home for yourself in favour of reinvestment and rapid growth. When this happens, you need to make sure that you are doing so strategically. You need to understand the trade-off you are making at this point in time. Make sure you have an end goal since failure to do that will breed resentment and dissatisfaction of your businesses’ financial and profitability performance.
Remember that managing a business is all about managing tensions – which to save and which to reinvest, how much to take for yourself and how much goes into profit-boosting. As you spend more time strategizing, you’ll get a better feel of what’s best to do in every season of your business.
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