In today’s world it is easy to access information on what is happening around us at any time. Gone are the days when something happens in the north and it takes weeks for the news to get to south. The world has become a Global Village so much that information has become easy to access.
It is a shame to be globalised in every way except in the way of doing business and yet we want to sell our product to the modernised consumer. We are so quick to update our lifestyles so they fit in in the global world but forget to upgrade our businesses and ways of doing business. We choose to remain backward in our business and advance our social lives.
We are quick to grab the latest iPhone, Samsung, Mercedes Benz and all sorts of things for the sake of prestige. The profit of a business is more significant when it is reinvested. It is reinvestment in your business that will make it grow. Not to say that profits are not subject to personal use, but the extent to which they are used in one’s personal life determine the sustainability of the business. In today’s global village were competition is stiff small businesses face challenges of survival in the market. Reinvestment of profits helps in the sustainability and growth of the business.
When profit is reinvested, the entrepreneur gives the business a chance to compete in the global village. The reinvestment enables the business to fit in the global village as it advances in its ways of doing business, equipment for business and personal for business. Reinvestment may mean ability to hire experts that will grow the business. Reinvestment may mean buying equipment that is more efficient in production. In this Global Village it is key to think sustainability before spending Profits.