Finance, Fintech & Wealth Insights

  Dikanons Finance | Business Finance A business making a profit is generally a positive sign, but it also creates an important financial decision for the owner: how much of that profit should go back into the business? You may want to purchase more inventory, replace old equipment, hire additional staff, improve your technology or invest in marketing. At the same time, the business has bills to pay, suppliers to settle, employees to compensate and other financial commitments to meet. You may also need to earn an income from the business. So, how much business profit should you reinvest? There is no single percentage that works for every business. The right amount depends on the business's cash position, operating expenses, outstanding obligations, reserve requirements and the opportunities available for growth. In my view, one of the mistakes business owners can make is treating profit as money that is automatically available for spending. A business may report a healthy...