Top 3 Reasons Why You Should Re-invest In Your Business

by Samuel · 28 comments

One of the reasons why many people fail to achieve success in the business world is that they failed to re-invest in their business. For you to take your business to greater heights, you must be ready to re-invest in your business.

Successful entrepreneurs or business owners re-invested in their business, that’s why they were able to take their business to a greater height.

Re-investing in your business should not be a hard thing to do; it’s only if you are a glutton, I mean someone who see his or her business profits as something that needs to be spent on luxuries. Spending your business profits on luxuries will do no good to your business. It will affect your business and you if care is not taken. In order to take your business to greater heights, you must embrace the act of re-investing in business.

Many people still wonder why they should re-invest in their business, in this post I will tell you the reasons why you should re-invest in your business and they are highlighted below:

Re-shape The Future Of The Business:

Re-investing in your business will help re-shape the future of your business by pining up the business loopholes. If your business is vulnerable, it will pin it up.

For instance, you owe your product supplier a debt, I mean you’ve not paid for the goods you bought and by using your business profits to pay for the goods you bought, it means that you are re-investing in your business in order for the business not to liquidate.

Using your business profits to pin-up your business loopholes will help make your business stronger and give it a bright future. No business owner will succeed in the business world if he or she doesn’t re-invest in their business. I’m sure the business owner, who does not re-invest in his or her business will not last long in the business world. Because the future of the business won’t look promising.

The good thing in business is, saving the business when it’s trying to fall. If you are able to save your business when it’s trying to fall, you will be a great entrepreneur or business owner. And the future of your business will look brighter. But if you are not able to do that, I doubt if you will be a great entrepreneur or business owner. So to save your business, you must be ready to re-invest in the business.

It Makes You Look Professional:

If you are able to re-invest in your business in order to take it to a greater height, people would love to work with you. Because it shows that you know how to run a business.

Entrepreneurs or business owners who fail to re-invest in their business do look like a dumb, who came into the business world just because he or she heard that, they can make it big without re-investing in their business.

I’m sure you will be proud to see people who wants to work it you? That’s why it is good to re-invest in your business. It shows that you came into the business world in order to build a great business empire and not because of the business profits. Everybody wants to work with someone who really knows how to run a business and not someone who don’t know how to do that.

Investors really love to invest in a business idea, if the person is willing to re-invest in the business in order to make the business a successful one.  So what I’m trying to say is this, if you should re-invest in your business, it will make you stand out from people who don’t know how to run a business and it will make people want to work with you, simply because you know what it takes to run a successful business. I’m urging you to re-invest in your business if you want to look professional.

It Will Help Expand Your Business:

Re-investing in your business will help expand your business. How do you think that businesses that have branches across the world were able to expand their business? It’s because they re-invested in their business, that’s why they were able to have different branches in different cities or countries.

It will help expand your business, by employing more workers to work for you. You know that as a business is growing more hands are needed in order to make the business function properly. That is why it’s good to re-invest in your business so as to win in a big way in the business world. You the business owner will have a peaceful mind if you should embrace that idea.

If you have not being doing this, I’m urging you to do so in order to make your business a fruitful one. Don’t listen to people who don’t embrace the idea of re-investing in their business. Because if you should do, you are next to the exit door.

Share Your Thoughts:

Do you think an entrepreneur or business owner should re-invest in his or her businesses? Feel free to share your opinion by using the comment section. Thanks a lot.

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{ 28 comments… read them below or add one }

Malaika January 11, 2011 at 4:54 pm

This a great post sam. I like how you put out that people should resist spending their profits on luxury instead of putting it back into their businesses. This is an insight into what an entrepreneur with vision would never hesitat to do. Wonderfull.

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Samuel January 15, 2011 at 12:36 pm

Hi Malaika,
Glad you love the post! Thanks so much for the comment.

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John from Electricians in Paddington January 11, 2011 at 6:10 pm

Good points here! Very enlightening , anyway, making this post is really worthwhile. For me re-invest is really good.
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Samuel January 15, 2011 at 12:40 pm

Hi John,
Glad you love the post! Thanks so much for the comment. Have fun :)

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Bryan January 11, 2011 at 6:56 pm

Samuel, you make some great points here. In Robert Kyosaki’s classic book, “Rich Dad Poor Dad,” he talks about 2 things people spend their money on: assets or liabilities. No matter what it is, it will always come under those two categories. If you are blowing your money on gadgets, electronics, vehicles, etc., you are usually spending on liabilities. (Real estate is different but this is about the only thing.) If you are a smart business person, you will learn to spend on things that will bring in MORE money. It’s a continual process.

Thanks for the biz flakes today, bro!
Bryan recently posted..10 Lessons from Mr Rogers That Can Help You Have a Fantastic Day

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samuel January 15, 2011 at 12:45 pm

Hi Bryan,
I’m a huge fan of Robert :) Sure, to create wealth you must spend your money in buying asset. Thanks so much for the awesome comment bro! Have fun :D
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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steven papas January 19, 2011 at 12:23 pm

nice post Sam. Bryan it ‘s so good you mentioned Kyosaki! Robert’s books are a revelation to those who want to get financially free. People tend to spend money on liabilities rather than on assets and this is because they want instant gratification. They just can’t wait for ROI to yield.
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Bryan January 19, 2011 at 2:42 pm

Steven, right on, man. Instant gratification is all an illusion. We think the product will make us happy and it fails to deliver after the first week or so. How much do we spend that we could have spent in investing in ourselves.

Sam, look what you started! :)
Bryan recently posted..The Rules For Making A Good Impression

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Shailender @ Valentine Vacation January 12, 2011 at 12:16 pm

Hi Samuel,

I do agree with you that business entrepreneur must re-invest in the business, but how much and for how long it totally depends upon business environment & some other factors too.
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samuel January 15, 2011 at 12:47 pm

Hi Shailender,
I don’t get what you are saying? Sure, it’s good to re-invest in your business. Thanks so much for the comment. Have fun.
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Jk Allen January 12, 2011 at 1:44 pm

Samuel – brilliant tips. I’m curious how you utilize these very tips in your own business dealings. For me it’s always nice to here the direct experience – it enhances the learning.
Personally, I believe that the reinvestment in our own business is critical for longevity. Without it, things will get stale, fall behind times, and eventually fail. You have to keep the machined oiled…the oil for business is reinvestment.
Thanks Samuel!
Jk Allen recently posted..Stepping Forward Towards Progress

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samuel January 15, 2011 at 12:48 pm

Hi JK,
That’s just the fact behind building a great business empire! Thanks so much for the awesome comment bro. Have fun :)
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Stuart January 12, 2011 at 9:09 pm

Hi Samuel, great read!

I remember reading about Richard Branson’s many avenues of business, and how he’d pump the profits from one business into forming another business. Eventually, he created the Virgin empire!

We could do very well to observe Richard Branson’s tactics, and to read your posts Samuel. Keep up the great work :-)
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samuel January 15, 2011 at 12:52 pm

Hi Stuart,
Richard is a great guy! I love his works :) Thanks so much for the awesome comment. Have fun bro :)
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Dia January 13, 2011 at 1:31 am

Hi Samuel,

For sure reinvesting in our business is crucial. It shows that we willing to give our customers the best we can. This is what great companies and businesses do all the time. Thanks for sharing
Dia recently posted..How to improve yourself as a person

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samuel January 15, 2011 at 12:53 pm

Hi Dia,
You are right bro. Thanks so much for the comment. Have fun :)
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Mike Hirst January 13, 2011 at 4:26 am

I agree in principal that people need to reinvest in their businesses… My only word of caution would be to consider HOW you’re re-investing. Most people reinvest with the goal of expansion. I don’t care what your business is, in 2011, expansion should NOT be your greatest goal for your business. In fact, you should do everything you possibly can NOT to expand. Stay small, stay profitable, and enjoy your success. If you need to be convinced further, read “Rework” by Jason Fried of 37 Signals.
Mike Hirst recently posted..Artists don’t follow trends

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samuel January 15, 2011 at 12:56 pm

Hi Mike,
Before thinking about expansion, you must make sure all your business loopholes had been pin-up. When you’ve done all the necessary things, then expansion will surely come in! I hope you get what I’m trying to say? I will check out the book. Thanks for the comment.
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Praveen@Techperk January 13, 2011 at 7:54 am

your title is good and a nice write up as well but you have to be careful in re investing as i had very bad offline experience. it made me bad rather than look like a professional as you have listed
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samuel January 15, 2011 at 12:58 pm

Hi Praveen,
Thanks so much for the comment.
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Home Business January 13, 2011 at 11:02 am

Thank you for the information. Great job you have done and keep it up.

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samuel January 15, 2011 at 12:59 pm

Thanks for the comment!
samuel recently posted..Top 3 Reasons Why You Should Re-invest In Your Business

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Hector Avellaneda January 18, 2011 at 1:45 am

Sam

Awesome points in this article.

I think that by reinvesting in your business you’re doing a few key things that will contribute to overall success and will say a lot about your character.

1. expanding and helping people; not only by providing a valued product or service but by also creating more jobs for those that need one.
2.By expanding your creating more of a market base and stimulating your local and/or global economy.
3. You’re saying a lot about what you really value and in the process attracting more people to want to do business with you.

A prime example I can think about here is Warren Buffet. Arguably one of the brightest financial minds of our time, the 3rd wealthiest person in the world with a net worth of about 47 billion and pays himself only $200,000 per year. To some that may seem like quite a bit of money but in actually it’s less than 1% of his net worth.
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Samuel January 19, 2011 at 3:48 pm

Hi Hector,
Love the awesome comment! You are right bro. That’s just the fact behind re-investing in your business. Thanks so much for the comment. Have fun.

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Steven @ The Real Debt Solution January 19, 2011 at 4:19 am

This is a great article that explains why 8 out of 10 businesses fail within the 1st year of opening. According to the SBA (Small Business Association) When I started my publishing business in 1991 I continued to work at my 3rd shift security guard job and I reinvested my profits back into the business.

As I grew over the years I’ve had over 38 other publications start in my area and all of them failed and went out of business within 2 to 3 months. The majority of them wanted to be the big boss and didn’t run their business like a professional. And a big part of that is to not spend your profits on material items rather it should be reinvested back into the business.

There will be plenty of time for the toys!
Steven @ The Real Debt Solution recently posted..Mo’ Money Better Health

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Samuel January 19, 2011 at 3:53 pm

Hi Steven,
You are right man. Don’t waste your money on materials, re-invest it into your business. Thanks so much for the comment. Hope to see you soon.

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Website Design February 5, 2011 at 8:05 am

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Ankhil April 6, 2012 at 6:04 am

I think success is the real achievements measured against your perceived challenges. Everyone/business has challenges (goals) and so they should be able to calculate their successes. Financial Planner Virginia

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