As a small business owner, I’m sure you’ve heard all the cool kids talking about reinvesting in their business, but what does that really mean? And why is reinvesting so important in achieving growth for your business?

If you’re curious about the answers to those questions, you’ve come to the right place! Figuring out what reinvesting in your business means will be uber important in creating actionable steps to generate maximum profit.

Whether you’re cutting an expense (or five), or hiring someone to take on admin tasks so you can focus on being the best small business owner you can be, reinvesting in your business doesn’t have to stress you out mentally or financially.

What is Reinvesting?

I’ll start by saying that reinvesting is NOT a general operations expense. Being a small business owner means you’re shelling out money to keep your business’ gears greased and turning each and every minute of the day. Without these essential costs, you wouldn’t have any business at all!

What reinvesting in your business means is that you take part of your profit that you would normally pay yourself with, and invest it into something that will stimulate growth and increase your profit margins.

Reinvesting in your company with the intention of getting a healthy ROI (“return on investment”) is key in creating the right mindset to achieve your growth goals. But realistically looking at your financials and making smart reinvestment decisions is just as important!

Understanding your Unique Financial Situation

Getting a clear understanding of your financial situation as a small business owner is going to get you the most bang for your available bucks. Being strategic with the money you have left over from paying yourself and making smart decisions with said money will get you that ROI you deserve. 

This means you must analyze any profit, expense, outstanding debt, and liability to move forward with a realistic view of what to reinvest in, and the best time to do it. You can evaluate your ROI on reinvestments by estimating savings and profit, and then comparing them to the original cost.

Assessing the risks associated with your investment is also key in understanding what reinvesting in your business means, and could save you from pouring that hard earned money down the drain.

What Does Reinvesting Actually Look Like?

As I said earlier in this article, what reinvesting in your business means and how to do it successfully is super nuanced, but it is not impossible. I think we all know by now that cutting an expense or two and curbing spending can help, but it’s not the only way. And sometimes – it’s the wrong way. 

Let’s go over some options to stimulate financial growth.


Whether you’re choosing to hire a bookkeeper or someone to take over admin tasks, hiring someone to lessen your workload will give you more time to focus on the growth of your business. 


This can increase your brand awareness and help your business to reach a wider audience. How you do so will depend on how your business operates, so it’s best to experiment with various strategies to see what will create the most return.


Learning a new skill related to your business functions will not only add worth to your business, but can expand your business’ services and offerings. Sending an employee to learn a new task will benefit you financially, also!

Purchasing an Asset

Buying a piece of equipment that pertains to your business’ services that helps you produce products more efficiently can be a guaranteed ROI. If you can make two of something in the time it usually takes you to make one without your asset, well, the proof is in the numbers!

Make a Plan

To truly implement the things you’ve learned about what reinvesting in your business means, you absolutely, unequivocally, need a plan. Creating said plan is critical when trying to meet your long term financial growth goals. 

The first thing you should do, before you even begin thinking about choosing which reinvestment route to venture down, is to start an emergency fund. This fund will give you security in uncertain times, and also allow you the ability to pounce on chance reinvestment opportunities that might fall into your lap unexpectedly.

When planning for your business’ future, things like increasing your profit margins and cutting your expense margins just a smidge can generate some serious reinvestment money in a short period of time.


From global pandemics to hitting financial plateaus when you’re working at absolute capacity, being a small business owner is full of trials and tribulations that threaten to slow your growth and inhibit profit.

Now that you have a better understanding about what reinvesting in your business means, go forth and prosper, friend! 

Go learn a new thing. 

Go rid yourself of an unnecessary expense. 

Treat yourself to a new hire and less work. 

The world is your oyster!

If you’re still unsure how to move forward, please reach out and let me show you the way!