[For Business Owners] Investing Back Into the Biz

Feb 15 in General discussion & questions

Hey all,

I'm curious to know what other business owners do when it comes to investing profits back into the business (vs. taking it out as revenue).

As context, I run a small business (me, my wife, a VA) and we had a really solid year last year (gross revenue north of £500k with a very solid profit margin as we are a lightweight, service-based biz).

We use the "Profit First" operating model, meaning we pay ourselves first, so we draw a nice salary and also pay ourselves quarterly bonuses when our "profit" pot has extra money.

Now we're winding down the year, trying to think about investments we could make to grow and improve the business (customer research, website development, content strategy, etc.)

A quick Google leads me to believe the range is around 2.5% to 5% of profit for B2B and slightly higher, maybe 5-10% for B2C.

But I'm much more curious to hear from fellow business owners on a similar path.

Anyone out there?

Thanks!

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