Trying and working hard enough will at some point give you some results.
This is why it’s important to keep track of how we got that result and how we can do it again.
If you are starting a business and you’ve made your first sales. A smart thing to do would be to invest that profit and create even more sales.
Let’s say you invest $50 on advertising. As a result, you make a few sales that leave $100 in profits.
Rather than spending this $100 profit on useless things you don’t need. You can reinvest them into our business.
In this scenario, you want to spend them on similar advertising. That would, in theory, duplicate your profits leaving you with $200 in profits.
Of course in reality cases like this are rare if you are just starting out.
Maybe we invest $100 and get $5 back in profits. Depending on your marketing skills.
Just breaking even is good and can be tough.
I’d say reinvest all profit back into your business. Because it makes scaling so much more efficient.
This is especially relevant in the first stages of building a business.
Only when profits are flowing on a regular and predictable basis. That’s when we can start spending on useless things we don’t really need.