Getbig.com: American Bodybuilding, Fitness and Figure
Getbig Main Boards => General Topics => Topic started by: Roger Bacon on June 14, 2012, 12:35:42 PM
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What do small (and large) businesses typically do with left over profit after payroll and bills are paid?
Do businesses have "savings"?
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they try to reinvest and grow the business
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they try to reinvest and grow the business
QFT
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they try to reinvest and grow the business
Yeah, they can. What do they do though if they have no reason to grow or it's not a good time to reinvest. Generally?
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they try to reinvest and grow the business
This
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What do small (and large) businesses typically do with left over profit after payroll and bills are paid?
Do businesses have "savings"?
The "small (and large)" statement makes thid thread bodybuilding related...
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Yeah, they can. What do they do though if they have no reason to grow or it's not a good time to reinvest. Generally?
Savings account or buy something that will accrue in value over time.
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Yeah, they can. What do they do though if they have no reason to grow or it's not a good time to reinvest. Generally?
Business savings. Regardless, if you don't keep trying to grow and stay where you're at, taxes go up and the less you keep...that's the short answer. Or just reinvest in something else.
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If the said business is a gym, keep it for the summer, believe me, you'll need it.
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Savings account or buy something that will accrue in value over time.
Okay, I see. Would this be some kind of business savings or just a general account?
Do business owners just generally take any left over profit anyway?
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Business savings. Regardless, if you don't keep trying to grow and stay where you're at, taxes go up and the less you keep...that's the short answer. Or just reinvest in something else.
Oh, okay... Thanks Coach!
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What do small (and large) businesses typically do with left over profit after payroll and bills are paid?
Do businesses have "savings"?
They spend it on g4p parties, if you are buff and in shape you might just get invited to pose nude.
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Okay, I see. Would this be some kind of business savings or just a general account?
Do business owners just generally take any left over profit anyway?
Depends on how greedy they are. In general you take enough to live on. It also depends if you're a sole proprietor or corporation.
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Give an example of a small business that is not searching for growth? The sole function of a business is profitable growth for shareholders. Actually, sustainable profitable growth, if you want to get nit-picky.
Finally, when would you not re-invest in your business interests? Presumably, the owner of a small business invests in his own business interests because he believes the long-term prospects of investing a dollar into his own business provide greater return on capital than would the stock market, working for the man, buying real estate, or putting in a savings account.
Honestly, if the small business owner isn't trying to grow, then he's just "made himself a job"...he hasn't really created a business. If the business doesn't grow, it dies with the owner, and then it really never was a business to begin with. Just a job that someone had.
Real Estate brokerage that already dominates very small town in a bad economy. Equipment that more than does the job, two employees that are paid, seven agents that are independent contractors and occasionally a surplus of cash (not enough to open an office in another area though that may or may not survive).
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Real Estate brokerage that already dominates very small town in a bad economy. Equipment that more than does the job, two employees that are paid, seven agents that are independent contractors and occasionally a surplus of cash (not enough to open an office in another area though that may or may not survive).
Or in my case, I own a wholesale nursery/tree farm that is my side business and prices for trees have dropped 40%. I don't want to re-invest for growth as I have enough inventory to sustain sales for many years. I run the business and do all of the work myself and I want to keep it that way so no growth re-investment here.
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most small buisnesses if they are legit you wont save very much. this economy is rigged percisely not to let that happen like in the past, unless there will be a new law for really cheap immagrent labor or a new technology or invention happens
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Or in my case, I own a wholesale nursery/tree farm that is my side business and prices for trees have dropped 40%. I don't want to re-invest for growth as I have enough inventory to sustain sales for many years. I run the business and do all of the work myself and I want to keep it that way so no growth re-investment here.
its always more headaches the more people that get involved
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Why not re-invest in the business to grow your territory. With prices for trees at these prices, expanding your territory could pay huge dividends with the margins you would stand to make.
Opening up territories requires marketing and sales expenditures (SG&A). Reduces EBITDA. Perhaps this shouldn't be your side business anymore. Perhaps it's time to take on employees, open up the lanes, and take the plunge to see what your business can truly withstand. Now may be the best time ever to invest in your own business.
If you lose, you're out inventory (bought at low prices) and some marketing expenditures which even if off-point from a target-market standpiont, probably still had some residual effect on your current territories/target markets.
Just saying...
he would have to hire new fuckers and teach them everything about fucking, this is the problem when a buisness manager runs into when he has all the knowledge but people take too long to soak it up like a sponge to keep fucking at the same pace
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Savings account or buy something that will accrue in value over time.
like a lot of alcohol
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Why not re-invest in the business to grow your territory. With prices for trees at these prices, expanding your territory could pay huge dividends with the margins you would stand to make.
Opening up territories requires marketing and sales expenditures (SG&A). Reduces EBITDA. Perhaps this shouldn't be your side business anymore. Perhaps it's time to take on employees, open up the lanes, and take the plunge to see what your business can truly withstand. Now may be the best time ever to invest in your own business.
If you lose, you're out inventory (bought at low prices) and some marketing expenditures which even if off-point from a target-market standpiont, probably still had some residual effect on your current territories/target markets.
Just saying...
Send me a Weeping Cherry Tree in White and in Pink please!
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Why not create an umbrella company that not only invests in the brokerage as a sustainable form of free cash flow. But then use this surplus cash flow and re-direct into:
1. opening another brokerage in a similar situation. Presumably, the owner has a model on how to dominate with monopolistic tendencies. Find a similar market, franchise the "IP" and soft skills needed to get the job done, and do it all over again. Sit back, and collect more cash
2. diversify portfolio of the umbrella ownership. Nothing new...see Buffet, Warren. Find companies starved for capital that could turn a positive free cash flow, invest in them, and rake in the dough when managing them aggresssively the way you know how. Shit, just buy a McDonalds franchise...make some kind of ROI.
Damn you're brilliant, I'm an idiot but I'll definitely run this by someone that isn't. THANKS!
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Or in my case, I own a wholesale nursery/tree farm that is my side business and prices for trees have dropped 40%. I don't want to re-invest for growth as I have enough inventory to sustain sales for many years. I run the business and do all of the work myself and I want to keep it that way so no growth re-investment here.
Yes, I knew businesses like this existed all over right now.
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Not sure if serious. So will accept compliment!
I am serious 8)
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What do small (and large) businesses typically do with left over profit after payroll and bills are paid?
Do businesses have "savings"?
You either put it back into the company, like a piece of equipment, take a distribution, or leave it in and pay tax on the profit. You can't keep all of the money at the end of the year without paying taxes, so if you need something, buy it. 2010, I needed a new truck, so I bought that. I usually keep a cushion in there, so some taxing is inevitable, but it's better than starting the new year out at zero. But, I will use any excuse to buy things for the company, if I have a need/use for it as well. But, you should always put your money back into your company to grow it.
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You either put it back into the company, like a piece of equipment, take a distribution, or leave it in and pay tax on the profit. You can't keep all of the money at the end of the year without paying taxes, so if you need something, buy it. 2010, I needed a new truck, so I bought that. I usually keep a cushion in there, so some taxing is inevitable, but it's better than starting the new year out at zero. But, I will use any excuse to buy things for the company, if I have a need/use for it as well. But, you should always put your money back into your company to grow it.
I see, thanks!
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We invest in products and equitment for the next year and the rest is distributed to family members.