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How much of my profit should I put back into my business?

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How much of my profit should I put back into my business?

Answered By Charly Applegate, Editor


Basically, the profit that you get from your business is considered to be your savings and may be used to fund other things such as loans and mortgages. However, in case that you plan to expand your business, you can utilize the profit that you have earned.

On how much profit you will allot to your business, it will depend on the expansion that you plan for your business. Things such as additional equipments (in case you are on a production-type of business) and personnel should be taken into consideration. After you have determined these things, you can now calculate the total cost that you will incur from such expansion. You can now decide on the percentage of the profit that will go back to your business.

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