greenion
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Joined: 9 Jan 2010
Posts: 48
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#1 · Posted: 26 Feb 2010 17:30
First off, before I get into this post, I was hoping for some input with my last post on this topic. Hopefully, I will get a better response this time around.
Ok, so here goes.
The goal of any business in general is to make a profit. And then to take that profit and re-invest that back into the business. This is no different with any online venture.
The question that I have for myself is this. How much of that profit do I devote to the business of doing business online and how much do I set aside to cover for my daily expenses? I suppose the real question is, what takes priority?
The answer might be obvious, but not so straightforward an answer if you are scraping pennies to pay a 2-month late bill. (Not to say that that is my situation, because it could be anybody here.)
Another question that I ask that may also have an obvious answer is, what is profit, when in falls under doing online business, not a business online. ex. Blogging, Article Marketing, Freebie trading, Adwords|PPC|Adsense, PTC|PTR|PTD, etc.
So, now that I've shared my view, I open to reading yours. Please post a reply. Thanks!!
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Mark_Worthen
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Joined: 20 Mar 2007
Posts: 114
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#2 · Posted: 26 Feb 2010 21:16
I would set aside enough each week to make sure you can cover your monthly expenses and then reinvest as much of the excess (profit) into building your business.
If you need some of your profit to pay for non-business expenses, determine a percentage of your profit you need for those expenses and reinvest the rest.
I like to track Return On Investment (ROI), which for these purposes is calculated as (Profit - Expenses) / Expenses. It's encouraging to see how much you are creating as a result of your efforts. For example, my ROI averages about 300%. Thus, for every $1000 I invest in advertising and other business expenses, I earn $3000! Can't beat that kind of return at any bank. 
I wish you all the best in your business endeavor!
Mark
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