How do you decide how much to reinvest in new products or stock?
Start with actual profit, then reinvest conservatively so growth doesn’t strain cash.
Reinvesting grows your business, but overspending can drain cash. Start by knowing your true profit — what’s left after supplies, fees, travel, and other costs.
Split profit intentionally
Many vendors divide profit into slices: pay yourself, set aside money for taxes or savings, then use the remainder for reinvestment. Begin with conservative percentages so cash stays available.
Reinvest gradually
- Allocate a fixed percentage of each market’s profit (for example, 20–30%) toward inventory or product development.
- Prioritize proven sellers and efficiency upgrades that increase average order value.
- Test new ideas with small batches before committing more money.
Keep a buffer
Always maintain a cash cushion for cancellations, equipment issues, or slow markets. Reinvestment should never leave your account at zero.
Track how reinvested funds affect sales over time. The goal is sustainable growth that protects weekly operations while expanding what works.
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