Why Successful Entrepreneurs Invest In Their Businesses

“In investing, what is comfortable is rarely profitable.” – Robert Arnott

Nobody believes that starting your own business – and maintaining it – is easy. It brings plenty of risks. You must give time, money, and effort, all of which are huge investments.  You may have planned a variety of ways to spend your earnings. What if you reinvest what you have earned?

Nobody believes that starting your own business – and maintaining it – is easy. It brings plenty of risks. You must give time, money, and effort, all of which are huge investments.  You may have planned a variety of ways to spend your earnings. What if you reinvest what you have earned?

Investing your own money to drive your growth is a high-risk, high reward scenario. Yet, if you want to scale your business, taking that risk is imperative. 

Why invest in your business?

  1. To scale your business

If done properly, there is no doubt your investment can help scale your business. Additional funds can help you improve your marketing, hire the most qualified people, invest in CRM to improve your relationships with your clients, invest in research, and much more. All these are aimed at improving the quality of your business and helping you do more to attract new customers. 

  1. It will make you more focused 

Many call it “having skin in the game”.  We tend to take things more seriously when we put our money on the line.  And when you as a founder take your business more seriously, it will rub off on everyone else around you.

  1. Lets you concentrate on your expertise

With no one to answer to but yourself, you can focus on what you do best and leave the rest to your people. Being a jack-of-all-trades can only get you so far. If you are good at strategy but not in sales, then hire a salesperson. Knowing and acknowledging what your weaknesses are is always considered a strength.

  1. Improves employee productivity and engagement

Employees become more productive and truly engaged when their employers invest in their development and provide them with tools to help them become more efficient. When they see you are willing to spend for them and the future of the company, they start to feel that they are part of the family.

  1. Better product quality

Your product will always be one of the main factors that will drive your business’ success. You should consistently be investing in research and development to improve your current products or introduce new ones. Large companies spend a lot on research and development, which is why they are so successful.  Even things as simple as customer surveys and competitor research which are relatively inexpensive can keep you innovating. 

  1. Attract top talent

You have the money, so you can now afford to hire the best talent available, or even those who are not available. With the culture, you have built and the money to spend, even professionals from other companies w00000ill stand up and take notice.  Do an in-depth analysis of what talents your team is missing and go out and find the missing link. 

Where to begin?  

1. How much can you invest?

When your business earns a reasonable amount, it can be quite tempting to start paying yourself. However, you might want to resist the temptation and start reinvesting that money back into your business. 

Start by checking your operating expenses. If your (Operational Expenditures), OPEX fund is just enough for your monthly expenses, then you cannot set aside money from that fund to invest in your business. You will have to look elsewhere, which could be from your salary or profits.

2. Know your annual forecast & cash flow 

If you have an annual forecast, you already have a tool that will give you the information you need to make sound decisions regarding your business.  An annual forecast will also assist you in balancing your expenses throughout the year and understand your cash flow to know what you have leftover to invest.

3. Understand your finances

While your company is a separate entity, your company exists to generate income for you. If this business is your only source of income, you will have to be more aware of your personal finances. If you have other income, then you can be more flexible. 

How to invest your company’s profits

Listed below are some of the best ways to reinvest your business’ earnings.

  1. Marketing

Marketing will help you grow. With the advent of digital marketing, reaching out to potential customers has never been easier. Marketing has become more focused as far as reaching the right people is concerned. An investment in marketing can help you grow and expand your operations quickly.

  1. Business improvements

Some entrepreneurs reinvest in improving their businesses. They spend on infrastructure, inventory, and equipment.  Think about what is holding you back and steals your time… a small investment in a solution could advance your growth exponentially 

  1. Outsource

There are things that some people outside the company can do better. Consider outsourcing some of these tasks to free you and your team up so you can focus on things you want to do more. 

  1. Consider hiring a consultant

You might want to consider hiring a consultant. A consultant or coach can give you the proper guidance on how to create an effective business strategy, presenting to investors, guidance on executive leadership, and so on.

  1. Find ways to improve yourself

You can enroll in classes where you can improve your skills. Perhaps courses in management or sales can prove to be valuable to you or other key members of your team.


It is every entrepreneur’s dream to scale their business. If you are a business owner, you might be too busy to think about investing in your business right now and that is okay. Just make sure you have put your future investment plans in place to increase your chances for growth. 

Remember, what’s comfortable is often not most profitable.

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