Don’t plough all your profits back into the business …………..

Don’t plough all your profits back into the business   …………..  that plan is so wrong, and for so many different reasons! Here are just 2.

The current economic climate clearly shows why this plan is very risky. Who knows what’s going to happen next? Whether you are a garage owner, print specialist, IT supplier or operate a manufacturing facility you need to have a financial back-up plan which is completely independent of the current business market you are in.

The phrase ‘Don’t put all your eggs in one basket‘ sums it up neatly. Some of the businesses annual profits must be salted away each year into some form of pension plan, or if you don’t like this idea, placed into ISAs (cash and investments) or through some other different business activity such as ‘buy to let’ or direct investment into the stock market. This may slow business growth a bit, but it means life will be a lot less stressful at the time you need to review options i.e. when you come to sell the business – either to move on, or to simply retire.

The author feels a balanced portfolio needs to be reached and some combination of cash ISAs and investment ISAs through a suitable funds network (to spread the risks) is an essential part of this process.  See earlier blog.

My advice – start now and secure meetings with appropriate professionals. Alternately, call or Skype me at ianlinnegan for a general chat on who to speak with (and, more importantly, why). Send email first with some suggested times.


Subscribe to our e-mail newsletter to receive updates.

3 Responses to “Don’t plough all your profits back into the business …………..”

  1. money investing November 5, 2012 10:23 pm

    Hello there, I discovered your site via Google at the same time as searching for a related subject, your website got here up, it seems great. I have added to favourites|added to my bookmarks.

    • Ian Linnegan December 20, 2012 3:24 pm

      Thanks for4 your kind comments.
      Have a great Xmas and NY

      • Ian Linnegan January 2, 2013 12:49 pm

        Had a great holiday period despite the weather in UK – hope you did to.
        I’ve just added a couple of teats to the site – worthy of some serious inspection when to get the chance.