As a business owner, the moment you first see that you are making a profit, it’s easy to get excited. That’s a good thing – making a profit shows you are successful. However, there is a difference between getting excited and getting over-excited. The former is perfectly natural and a great thing to enjoy, while the latter could lead to a lot of problems, most of which will relate to overspending. After all, when you have more money than you did before, it’s going to be tempting to spend it.

This is why it’s important to know what you should do with your business profits even before you start making any. You then won’t run the risk of spending too much without thinking things through, and you’ll be able to use your profits to build your business, rather than lose them immediately, which could happen without good planning.

The best thing any business owner can think about is how to reinvest those profits in their small business. It might not seem like a great idea at first because you only just got that money, so why reinvest it right away, but the truth is that it’s far better to reinvest than it is for the money to sit in an account if that reinvestment makes sense. This is why you need to think ahead and know what to reinvest in when the time comes. Read on for some helpful advice.


Although there will be many things vying for your attention as a business owner, there is one element that needs to be considered before anything else, particularly when it comes to reinvestment, and that one thing is marketing. Without good marketing, it won’t matter what else you’re doing right because no one will be aware of your business. They won’t know what you’re selling or what services you offer, and they won’t know how that will benefit them.

Therefore, the better your marketing strategy, the more likely it is that you’ll find customers who will help you grow and make even more profits. It’s true that some marketing can be done for free, and you should absolutely explore those options if they are working for you as they won’t cost you anything – social media can be a good example of this.

However, when you have more money to spend, you can create (or have experts create on your behalf) much more interesting advertising campaigns that have a wider reach and will be seen by more people. In marketing, paying more can often be an excellent investment due to the customers and sales you’ll make in return, so this is certainly a good place to start when you have profits to spend.

Your Employees

Investing in your employees can make a big difference to your business in terms of productivity, and that in turn will make a huge difference in terms of additional profits. So you might want to consider reinvesting some profits in your employees. This can be done in a number of ways.

One way is to pay your team more. Of course, this will only work if the profits you’re making are sustainable and if the work they are doing warrants the increase. However, if it is something that makes sense, it can truly improve morale.

Another is to look at the journeys employees make from the moment they start on their first day with you. You could invest in better onboarding, better training, better management, or even a better office environment if that is required. Think about what it is your team needs and how you might be able to offer it to them, and try to put your money to good use. The more you take care of your employees, the more they will do for you, and that will help boost profits even more, so this really is an investment more than an expense.

Buy New Equipment

It isn’t always possible for a business to have the latest or newest equipment when it starts out. It isn’t always possible for a business to have the right equipment; employees sometimes have to make do with what they are given and work out a way to use it, even if it’s not what they need and not what works for them and the tasks you have asked them to do.

So when you have some profits you are looking to reinvest, buying new equipment can be a good option. When you have the most up to date equipment you can afford, you will look more impressive in the eyes of customers who want to work with companies who have the right tools. This is one positive thing, but another is that your employees will be happier and more productive as well. As we noted above, this is crucial when you are trying to build your business, and by ensuring they can do their jobs well and with the right tools, helping them to be not just more efficient but safer too, your investment will be one that pays dividends.

Research And Development

The first money your business makes can be a good sign, but there’s always room for improvement. It’s smart to use the money your small business makes to improve your products and services.

R and D (research and development) projects aren’t just for businesses that make things. Any business can benefit from spending a small amount of money to improve how it does business.

Continuing Education

Entrepreneurs are always learning new things to keep their businesses moving forward. Think about putting your money back into courses or seminars that will help you improve your skills. Continuing education courses that are relevant to their jobs can also help employees a lot.

Continuing education isn’t just for people who work in the medical, legal, or financial fields. No matter what industry you work in, there is probably a course or seminar that can teach you and your employees the best ways to do things. You can do as much or as little as you want, but using your profits in this way will benefit you and your business at the same time.