Money Money Money What to do with it?

Now you have your pressure washing or softwash business and your starting to make some money and you find you have a little bit left over at the end of each month and the big question what to do with it?

In my experience in the house wash business i have learnt that you have to always re invest in your business by buying new equipment, advertising, promo material. But you also have to hedge your money, You may ask what do i mean by hedging your money?

What i mean by hedging my money is that i split my profit into two potions both equal 50% each and with one lot i plow it back into the business and re invest in equipment or marketing?

With the other 50% i invest in either term deposits, Shares, Bonds or real estate this spreads my risk over a few sectors and i find when one sector is down 3 others are up. With the profits from my shares, bonds and real estate i re invest back into more assets in that area.

With the profits from the profits i re invested back into my business i always re split it 50% /50% again.

Remember your business is just there to earn money to buy assets that make you money, But never ever take all your profits from your business you MUST always re invest in your business so it can keep the money making cycle happening.

Thanks
Troy Hillard
Wash Rite
www.washrite.co.nz