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Why Reinvesting Profits is Essential for your Business Growth

So, your business has started to earn some hard-earned profit. Congratulations! Grow your
brand even further by reinvesting into it. Here are some reasons why reinvesting profits is
essential for your business growth.

Don’t Be Complacent. Expand!

As tempting as it may be, avoid the urge to splurge when profit comes in. Instead of spending
for your personal gain (or even increasing your salary), consider raising your capital instead!

After all, operating a business is a long-term plan. Expansion doesn’t happen overnight. As
you’ve worked hard to start your business, consider placing the same emphasis on making it
grow. Stay focused: in order for you to make your plans happen, you have to be willing to

The Cost of Growth

As your brand earns and grows, expect more expenses as well. Let’s discuss some areas you’re
likely to invest in:

Getting the Right Tools

If you’re in retail, you need to spend for specialized machinery to match product demands. Or if
you’re running a consultancy firm, you’ll want to have the latest programs or collateral for your
business to stay updated.

No matter what industry you’re in, you’ll need to always stay consistent with the tools for the
job. Part of being a successful entrepreneur is choosing the right tools to get things done –
which is why this is a good area to invest in.

Speaking of getting the right tools, remember to never sacrifice quality when it comes to
choosing what to buy.

That focus on quality is a key part of investing wisely. Investment is a commitment, since you
want to make the most out of the machine you plan to get. This is why carefully selecting
machinery is important in any industry. You just cannot get the latest or most expensive tool out
in the market (and just to find out that it doesn’t really contribute anything for your business!).

Here’s an example. Let’s say you own a garment factory. For you to expand, you need to get
some high-powered sewing machines. However, you also need to make sure the machine
you’re getting will fit your business setup – getting a sewing machine in a voltage that does not
conform with what’s in you factory would just be a waste of resources!

Invest in Talent

Aside from getting the right tools, you’ll want to invest in the right talent for your business as
well. You’ll want a certain set of people that would share the same business mindset you have.

Remember – it isn’t just you. You have a team with you in this journey. Investing does not
necessarily mean getting new people. You’ll want to improve your core members through
seminars or workshops.

Depending on your line of work, outsourcing may also be a good avenue to invest in. By having
more people handle different aspects of your business, you’ll be able to focus on other ways to
make your brand grow. Also, you wouldn’t want to tire your team with additional work during
an expansion, right?

Start Small, Grow Big

Investing, even in small amounts, can make a big difference. Here’s a great example on how a
local entrepreneur couple that made it big because they chose to invest:

Rodolfo and Rosiell De Leon’s Ice Candy Venture

Never underestimate the profit ice candy can bring. The De Leon couple, having found
themselves in financial turmoil, made use of their available resources to rise above their

With just a refrigerator and a mere P20, the couple bought some plastic bags. Filling these
bags with water and selling them as ice, they then earned P300. From that profit, they bought
some ingredients to make some ice candy, which they sold at P5 a piece.

It was a grind, but the couple kept at it. In a matter of six years, their ice candy business
expanded to catering for more than 130 schools!

Takeaway: The De Leons could have gone the usual way and spent the P20 on a lottery ticket.
Instead, they identified their resources, reinvested in their growth, and reaped their rewards!

Reinvest in Your Business Right Today

Start reinvesting in your own business the proper way today. RFC offers a Machinery and
Heavy equipment loan that offers you a chance to upgrade your tools for the job. Learn more
about this option here.

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