I realise now at 59 that from late forties onwards I was running a business or so i thought !! I have been in business for some 25 years plus I have been succesful and created assets I AM HAPPY WITH BUT OF COARSE NOT SATISFIED. Some business's were startup's some I bought going concerns and I have always had property to rent and create a passive income. I am choosing this subject to write about because in some way I may be able to help others in a similar position as I have been in.
Re Investing creates more
1)Why should we Re Invest ?
When your business makes a profit I found that keeping my living standards to an acceptable level meant I could keep more profit in the business by not drawing too much income. "Easy to do and easy not to do " We first get into business mainly to create more and this usually relates to money. we do it because we don't want to create more using our ability to create success for somebody else when we ALL have the ability to create more for ourselves and our family. We all want to achieve financial independence and create success. However if we are investing as much profit as we can back into the business I found growth comes quicker ( subject to the right strategy as in earlier articles https://digitalbloggers.com/business/the-change-in-business-from-40-to-50-pt-3 ). Remember we get paid by bringing value to the market place, if we dont re invest in our business it's very difficult to achieve.
2) Where do we Re Invest ?
I can give you an example of my experience which mainly involved buying stock and selling it on to create a profit. Therefore most of my investment went back into stocking more lines that gave value and help via that product my customer's wanted. I set a goal of increasing investment back in by at least10% BUT far more if the cash flow allowed it IE if I had 100,000 in stock I would keep at least 10% of my profit after tax to invest in more stock plus 10,000. However beware! make sure you clear old and slow moving stock. One of my mistakes in the past was to sit on slow moving stock thinking I would sell it a normal profit " at some stage or other " This was a mistake because what happens is staff concentrate on the new lines or popular lines and forget the slow lines. Therefore when I realised this I made it my job as the leader to clear this stock.
3) Don't forget to Re Invest in you
My experience, when I look back, brought something to the front on my mind. I would invest in my staff by training them and getting their mind set thinking in the correct manor, making sure they valued the stock and equipment making sure they looked after themselves personally, this reduced damages and sick leave. It also went towards helping the staff understand that the company had a value to them, to create profit, to give all who worked there an income. However I did forget to invest in me !! I stopped setting my self goals and stopped self improving by reading good material from other succesful people as well as not keeping my self fit !! The reason is because I told myself I didn't have the time to fit it in This was another of my mistakes.
When I realised all the mistakes I have highlighted then I realised I had to have a " change in my business "
I will be posting further blogs to follow on with this information to look at where we go from the questions posed today. Blogging is my new passion, I have fun coupled with happiness and fulfilment.
I want to thank you for reading my blog, would you please share like and comment.