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Accounts PayableAccounts Payable
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Business Credit LineBusiness Credit Line
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Business DebtBusiness Debt
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Business Expense PolicyBusiness Expense Policy
Business GrantsBusiness Grants
Business InsuranceBusiness Insurance
Business Interest ExpenseBusiness Interest Expense
Business LoanBusiness Loan
Business OverheadBusiness Overhead
Business PlanBusiness Plan
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Cash Flow ManagementCash Flow Management
Cash RunwayCash Runway
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Competitor ResearchCompetitor Research
Cost ControlCost Control
Cost StructureCost Structure
Cost of Customer AcquisitionCost of Customer Acquisition
Cost of Goods Sold (COGS)Cost of Goods Sold (COGS)
Credit ManagementCredit Management
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Digital PaymentsDigital Payments
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Economic Value AddedEconomic Value Added
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Exit StrategyExit Strategy
Expense ReimbursementExpense Reimbursement
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Financial CushionFinancial Cushion
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Financial Record KeepingFinancial Record Keeping
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Fixed CostFixed Cost
FreelanceFreelance
Gig EconomyGig Economy
Gross ProfitGross Profit
Growth StrategyGrowth Strategy
IncubatorsIncubators
Inventory ManagementInventory Management
Investment in BusinessInvestment in Business
Invoice ManagementInvoice Management
Long-term FinancingLong-term Financing
Market AnalysisMarket Analysis
Mentorship ProgramsMentorship Programs
Merchant ServicesMerchant Services
MicroloanMicroloan
Mobile PaymentsMobile Payments
Monthly Recurring RevenueMonthly Recurring Revenue
Net Operating IncomeNet Operating Income
Net ProfitNet Profit
Online Payment ProcessingOnline Payment Processing
Operating Cash FlowOperating Cash Flow
Operating LeverageOperating Leverage
Operating MarginOperating Margin
Operating ProfitOperating Profit
Personal GuaranteePersonal Guarantee
Point-of-Sale SystemPoint-of-Sale System
Pricing StrategyPricing Strategy
Pricing StructurePricing Structure
Profit MarginProfit Margin
Profit Margin AnalysisProfit Margin Analysis
Profit ProjectionProfit Projection
Profit ReinvestmentProfit Reinvestment
Profitability AnalysisProfitability Analysis
Recurring RevenueRecurring Revenue
Resource AllocationResource Allocation
Revenue CycleRevenue Cycle
Revenue DiversificationRevenue Diversification
Revenue ForecastingRevenue Forecasting
Revenue GrowthRevenue Growth
Revenue StreamsRevenue Streams
Revenue per EmployeeRevenue per Employee
Sales ForecastingSales Forecasting
Sales TaxSales Tax
Seed FundingSeed Funding
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Profit Reinvestment

Definition

Using the money earned from sales to help the business grow even more. Putting profits back into the company can boost new projects or upgrades.

What to consider

  • Assess the potential ROI before investing.
  • Ensure investments align with long-term goals.
  • Monitor the impact of investments over time.

Real world scenarios

  • An entrepreneur invests in a new software tool to streamline operations.
  • A small business purchases updated machinery to improve production quality.
  • A startup allocates funds for research and development to innovate its product line.

Related terms

Resource Allocation
Monthly Recurring Revenue
Equity Financing
Operating Leverage
Online Payment Processing

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