One of the best pieces of advice that any entrepreneur can receive is to reinvest profits. Startup companies tend to fall captive to the enticement of taking the profits out of the company and depositing them into their own bank account. While this is ultimately the goal of any business, it should not be the priority. Especially in the business’s infancy, owners should try to reinvest any profits that their business creates into projects or strategies that breed further growth. Delegating the profits toward more marketing or to technology that will make the business as a whole more efficient and in return reciprocate even more profits. If the money is never being reinvested in some way the business will remain stagnant at the same profit level.
Take this advice into your own business or personal finances. Establish what is the bare minimum level of you can withdrawal from your business or personal savings. Try to take any profits above this level and reinvest. Whether you are reinvesting investment profits in your retirement account or turning your business profits into an additional marketing ad in the local newspaper, you will be happy with the compounding effects that reinvestment has.