What do you do with your profits?

[Brendan]

So as we start to make money in our businesses, we start to generate a profit & see our bank balances going up and up.. what do you do with that money?

Most people's response is, '.. well we put it back into the business! ..' yep, of course you do.. but you can't be pouring 100% of it back into the business can you?

Have any of you considered investing those profits elsewhere, like in a high interest saver account? Or property? Or is it just sitting in a low interest standard account?

[Slade]

Interesting question Brendan. I was reading an article the other day that went into this in a little bit of detail, it seems as though a lot of small businesses don't usually know what to do when they start making money, where to put it and how best to utilise it.

Put idle money to work | NEWS.com.au Business (http://www.news.com.au/business/story/0,23636,23606072-38205,00.html)

[JamesGG]

Hiya,

I have fun with it :D

Because, that's why I've got my businesses and investments in the first place.

I was listening to a CD by Peter Sheahan recently. He's a marketing 'guru' of sorts who makes a bit of coin from teaching businesses about targeting Gen-Y. During that, he mentioned something about how today's twenty-somethings (that's me!) will often face the metaphorical choice between a marshmallow today, or a bagful tomorrow.

Most of us, apparently, take the one today. We still believe we'll get that same offer again tomorrow. And the day after. And the day after that.

So, in my mind, I'll keep that bonfire burning and keep a solid supply of sticks nearby. Lots more marshmallows where that one came from...!

Cheers

James.

PS - Highly recommend Sheahan's products. Enjoyed those a lot.

[justinsigns]

We started drawing a 2nd wage from the business with the extra profits to help pay the mortgage off.

Hopefully in the long run it will work out for us, though with rising rates it may well be sucked up.

[The Y-man]

Most people's response is, '.. well we put it back into the business! ..' yep, of course you do.. but you can't be pouring 100% of it back into the business can you?


I did something last year with the profits that would be the big undoing of my operation.... I borrowed more money and used the profits to pay the interest. When I stopped making profit.......:o

Cheers,

The Y-man

[HMcIntyre]

When I've put enough money in my business, for now I've just been sticking it in a savings account. I don't know enough about the Australian market at the moment to dare invest in stocks, though I'm educating myself and hope to be at that level in a couple of months.

I'm also considering real estate investment.