Reinvesting in your business is crucialIn a microcosm, the board game Monopoly has some wonderful parallels with operating a business. You start the game with too little money and there's a certain amount of chance as you make your way around the board until you can begin acquiring some of your own.
How many of you have won the game without buying properties and then reinvesting in houses and then hotels in the game? I'm guessing pretty close to nil.
One of the less glamourous secrets of succeeding in business is to reinvest in it to be able to better weather the downturns in the economy.
I recently struck up a conversation with a lady whose Husband owns a fairly well known business in San Antonio. She freely mentioned how he reinvested back into his business for many, many years and thus was better positioned to survive when sales for his industry became very slow due to the economy and such. She also revealed (since the conversation took place at the coast) how they have a couple of beach front condos thanks to the success of the business.
So, plant today and reap tomorrow. Start a business and reinvest into it as often as you can and it just may be able to produce for many years to come.
I am a CPA in San Antonio and provide bookkeeping, payroll, taxes and more. We offer a free initial visit and look forward to serving your business needs.
Richard J. Garcia | 07/14/2011