Balancing reinvestment and profitability

Section 5 : Building a flexible financial framework

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A flexible financial framework can help you manage the balance between reinvestment and profitability. This might include setting aside a percentage of profits for reinvestment while reserving the rest for operational stability and personal income. Having a structured yet adaptable approach provides clarity and minimises the risk of overspending or underinvesting.

Additionally, maintaining a financial buffer like an emergency fund or contingency plan, can give you the confidence to reinvest when opportunities arise without jeopardising your business’s financial health.

 

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