MBA1825 Q&A Wednesday: Should I take a dividend or always reinvest in my business?

When is it ok to take some profit home?

It’s Q&A Wednesday, and we’ve got a listener with a small — but profitable — software business. It’s doing pretty well, which raises the question: how much can a founder keep, guilt-free? How much should be plowed right back into the business?

It’s a great problem to have, but a problem nonetheless.

Today, we discuss what you should think about when deciding how much to reinvest. Based on your business goals and structure, the ratio of money in and money out can change. We’ll explore the factors involved, and how to make the best call for you.

Plus, we’ll discuss the best ways to reinvest (if that’s what you decide to do). 

Hopefully, this is a decision you’ll have to make in your own business, soon. Click Play!

Company of One by Paul Jarvis

To submit your questions, visit 100mba.net/q.

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