#10 Invest or DIvest

Before I begin this post allow me to put meaning and context to the words invest and divest.  For the sake of this post investing would refer to profits being put back into the business and Divesting would be using profits for external use.  Some of you maybe puzzled as to why would a business owner consider divesting,  I hope to convince you by the end of this post.

Benefits of investing your profits into your business

• Greater purchasing power
• Greater chance of increased sales
• Great chance of business expansion

Benefits of divesting your profits from you business

• Creation of another source of income
• Savings for emergencies 
• Peace of mind - knowing all your eggs are not in one basket

Reading these three point each can clearly show that both investing and divest can play a crucial role in a business.  No one option should trump the other, but both should be used in harmony.  I recommend that every business should have a predetermined amount on a monthly basis that goes to divesting while the rest stays with the business.  For example sign up for mutual funds or a money scheme at a registered financial institution where this money goes on a month basis and grows.

This brings us to the end of another post! I hope you are convinced of the benefits of divesting as well as investing in your own business.  Look out for my next post on Spend it!