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How and Why to RSS
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Three Ways to Re-invest in Your Business for Maximum Profit
If you are not re-investing your profits in your business, you are killing your business. Your profits should be put back in your business for growth, not buying your groceries.
Granted, you need to eat, but if you have started a part-time business, and you have another source of income, you need to re-invest most of your profits back into your business. Re-invest for growth. When your business grows, then you can start taking a profit.
Marketing expert Jeffery Fox calls this “paying steak and eating hot dogs.” The concept is simple: keep your expenses low, but don’t cut costs. Here are 3 ways you can re-invest in your business for growth:
1. Re-invest at least 50% of every dollar you earn in advertising.
You might think that you deserve to spend your profits, as a return-on-investment. You are right! But if you want your business to grow, you must re-invest in the business. For example, perhaps you spend $100 a month on leads for your business opportunity. These leads result in $200 in new sales. Instead of taking the $100 profit and spending it, what if you re-invested it, and bought $200 worth of leads for your business? You could end up with $400 in new sales the next month. Re-investing your profits this way can grow your bottom
line, but you must be patient in the meantime.
2. Re-invest by helping your downline grow their downlines.
If you are in a downline program such as a network marketing program where you receive residual and leveraged income, you can re-invest by spending time helping members of your downline grow and improve their businesses. This will take more time than money, and as they improve, you will see a direct result on your bottom line. Call or email someone in your downline and ask how you can help them grow their business.
3. Re-invest by improving your communications materials.
Instead of re-investing in more advertising, re-invest by improving your website, your business card, your autoresponder series, or your brochure. Maybe a simple cosmetic improvement on your website will increase your conversion rate. Hire a copywriter to write your sales letter, or a graphic artist to design a logo.
These are 3 ways you can re-invest in your business. Re-investment will speed growth and ultimately make your business even more profitable.
About the Author
Jeremy Hoover is looking for 10 people to mentor in a home business and will pay your first month in Empowerism out of his own pocket. Join at http://hoovermarketing.info .
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