Building With Profits

[Melos]

I was and am in the unenviable position of having no start up capital for any of the businesses I am building.  Therefore, I use profits only to help build them.

I was wondering what percentage or amount of profits other people put back into their businesses?

[ninikins]

Currently, since I'm starting out with a new business, 100%. I'minthe same position as you, pretty much by the sounds of it.

[Business Brian]

building gradually is a good way to grow - I started off with a $20/month reseller account, and then after I sold a cheap web design, I bought into the Worldpay processing system, because despite the expense, many people see it as a "safe" and reliable processor.

After that, build up as required, and as you can.

I don't tend to put an exact figure on it, but invest as required. For example, over the past 3 months I heavily invested above my income.

However, now I'm concerned about building up my capital again, not least to reduce costs and allow for another round of investment as required.

[taiarain]

I build my business with 50-75% of my profits. I also started with no capital.

Taia

[Business Brian]

Um, Taia - 50%-75% of nothing is nothing.

[taiarain]

Well, I'm a writer, so I had virtually no start-up costs.   

Taia

[Melos]

Well, you can still have profits if you have no start-up capital.  In fact, your profits could be greater   I'm currently putting nothing into my businesses because I am too busy with my own writing.