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How much of my profit should I put back into my business?
Author: Charly Applegate
Website: http://www.Cashflow-Answers.com
Added: Fri, Aug 11, 2006 10:39:57
Category: Cash Flow Questions
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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, if 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. Things such as additional equipment (in case you are in a production type of business) and personnel should be taken into consideration. After you have determined these things, you can calculate the total cost that you will incur from such expansion. You can then decide on the percentage of the profit that will go back to your business.
keywords: Cash Flow | Cashflow | Profit | Business About the Author:
Charly Applegate answers frequently asked cash flow questions and factoring questions at PrettyGreatAnswers.com.
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