BTC4Biz on Nostr: The Profit Predicament: What to Do with Your Hard-Earned Cash As a business owner, ...
The Profit Predicament: What to Do with Your Hard-Earned Cash
As a business owner, there's no feeling quite like watching your profits roll in. You've worked hard to create a product or service that people love, and it's paying off. But once you've got that profit in hand, the question is: what do you do with it?
You've really only got two options, and each comes with its own set of pros and cons:
1. You could return the profits to your shareholders, which is a great way to reward them for their investment. However, if you give them all the profits, you'll be left with no safety net in case things go wrong. And let's face it, things can go wrong quickly - supply chain disruptions, interest rate changes, unplanned maintenance, and other unexpected events can throw a wrench in your plans.
2. Another option is to keep the profits. But if you store the profits in your bank account, which seems like a safe and prudent move, that money will slowly lose its value over time. It's like trying to hold onto a melting ice cube - it's just not going to work. Inflation is a real thing.
So, what's a business to do? Once you've built up a basic emergency fund (think 6 months' worth of working capital), you need to decide how to manage the rest of your profits. If you've got new products or services you want to launch, you could reinvest in your own business through capital expenditure or R&D. You could also look to grow horizontally to vertically through acquiring a supplier, client or competitor, but mergers and acquisitions can be notoriously tricky and don’t always deliver the expected result.
The problem is, investing always comes with risk - the higher the potential reward, the higher the risk. You could try investing in real estate (traditionally seen as low risk), but that's not always the most liquid option – selling real estate can take months or years (and let's be real, who wants to deal with property taxes and maintenance?).
That's where Bitcoin comes in.
Bitcoin is inflation beating: From 2011 to 2023 its average annual return of 54% not only beats inflation but also pretty much most other high-risk investments.
Bitcoin is liquid: An always-open, 24/7/365 market with final settlement in under an hour, anywhere in the world, makes this an unbeatable vehicle. No bank holidays or weekend banking interruptions to worry about.
So, if it bothers you that you have to put your profits at risk just to protect them from inflation, then Bitcoin is something you really need to look at.
As a business owner, there's no feeling quite like watching your profits roll in. You've worked hard to create a product or service that people love, and it's paying off. But once you've got that profit in hand, the question is: what do you do with it?
You've really only got two options, and each comes with its own set of pros and cons:
1. You could return the profits to your shareholders, which is a great way to reward them for their investment. However, if you give them all the profits, you'll be left with no safety net in case things go wrong. And let's face it, things can go wrong quickly - supply chain disruptions, interest rate changes, unplanned maintenance, and other unexpected events can throw a wrench in your plans.
2. Another option is to keep the profits. But if you store the profits in your bank account, which seems like a safe and prudent move, that money will slowly lose its value over time. It's like trying to hold onto a melting ice cube - it's just not going to work. Inflation is a real thing.
So, what's a business to do? Once you've built up a basic emergency fund (think 6 months' worth of working capital), you need to decide how to manage the rest of your profits. If you've got new products or services you want to launch, you could reinvest in your own business through capital expenditure or R&D. You could also look to grow horizontally to vertically through acquiring a supplier, client or competitor, but mergers and acquisitions can be notoriously tricky and don’t always deliver the expected result.
The problem is, investing always comes with risk - the higher the potential reward, the higher the risk. You could try investing in real estate (traditionally seen as low risk), but that's not always the most liquid option – selling real estate can take months or years (and let's be real, who wants to deal with property taxes and maintenance?).
That's where Bitcoin comes in.
Bitcoin is inflation beating: From 2011 to 2023 its average annual return of 54% not only beats inflation but also pretty much most other high-risk investments.
Bitcoin is liquid: An always-open, 24/7/365 market with final settlement in under an hour, anywhere in the world, makes this an unbeatable vehicle. No bank holidays or weekend banking interruptions to worry about.
So, if it bothers you that you have to put your profits at risk just to protect them from inflation, then Bitcoin is something you really need to look at.