RE: What to do with profits from business ventures: spend or re-investment

Personally, I don't think that businesses produce a clean line item called "profit."

For sole proprietors, small businesses and even employee owned organizations ... every penny given as salary is a direct deduction from the business's profits.

As a business onwer, I know that if I have a cup of coffee, that cost of that coffee is coming directly from profit.

Interestingly, the same thing applies to large corporations ... corporations have a great deal of leaway in determining the amount reported as "profit." You will often notice successful companies going years without declaring a profit.

Here is a WINE. You can decide if you want to realize it as profit or keep it invested in HE.

!WINE

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