Out Of Interest...

[Lee]

How much of your monthly income does every put back into their business?

Having been doing some basic accounts stuff today i came to the realisation that we do put a fair amount of what we make each month back into the business.

Domains, Hosting, Content, Designs, Etc all add up on a monthly basis and to be honest, until earlier today i didnt realize just how much of the companies profits actually went back into the business.

Not that thats a bad thing though because i also came to the realization that each time we put money in, we usually end up with more profits :thumbsup:

So how do you plan how much additional money you will put back into your business each month?

Regards,

Lee

[AusCoding Allan]

I'm on a break from my study ... so just a little note to say that at the moment (this isn't sustainable) I put 100% back in to the business. I can afford to do this as I also work another full-time job. Hoping to slowly bring it back to 75%, my theory has always been you gotta spend money to make money honey!

Cheers,

Allan

[CuriousToyBoy]

Interesting Question Lee,

Are you talking gross or net income though? That changes things a a LOT of course.

To me domains, hosting, content etc etc is a "cost of goods sold" issue and is accounted for heavily (especially content) before profit figures are even put forward.

On NETT profit I personally I have the "30" rule of thumb.

30% Back into the business as further reinvestment

30% I save for a rainy day

30% I spend as I wish (usually on boring stuff like rent and food !)

What about the other 10%?

I never could count !!!

No, that goes into the kids Private High School and College Fund.

:bandana:

[Gary-Alan]

Originally posted by CuriousToyBoy
To me domains, hosting, content etc etc is a "cost of goods sold" issue and is accounted for heavily (especially content) before profit figures are even put forward.

LOL Let me point out that in Lee's accounting the domains, hosting and content he's talking about are for the new projects that come flowing out of his head every three days. LMAOPIP

A lot of what we earn does go back in for new development. The planned projects and ventures we do have is extensive... So until we can get to the end of the list, most of what is made will always go back into the company for more development.

That's one key factor on why so much of what we make goes back in.


Gary-Alan