How to determine reinvestment needs?
Asked 3 years ago
Hello, I am running a small business and I want to reinvest in my business to expand and hire more people. How do I know how much to reinvest, are there certain metrices that I can use? And what factors I should consider?
Jolina Regin
Tuesday, January 03, 2023
You can use the 50-30-20 rule to determine your reinvestment. It recommends that business owners allocate 50% of their profits to paying themselves, 30% to taxes, and 20% for reinvesting in the business. You can also determine reinvestment needs by evaluating the core values of your business, and knowing how much you want to pay yourself as the business owner.
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