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Old 2006-03-09, 11:05 PM   #1
karomesis
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Reinvested net capital?

Just a question for the pros, what would you reccomend as a intial starting point for reinvested net capital?10?20?45%? I was considering 100% for 9 months-1 year. If I was able to do so successfully,starting with 1000$ would my chances increase significantly in 2007/8 for 15-20 sales a day?
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Old 2006-03-10, 01:59 AM   #2
Toby
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I think I know what you're asking, but could you reword the question for those of us that are old 'puter geeks that didn't take any business classes while getting the comp sci degree? |confused|
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Old 2006-03-10, 11:58 AM   #3
karomesis
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computer science degree?, I wish. I never graduated high school, I just do ALOT of reading on everything you can think of from forbes and fortune magazine to new scientist and foreign affairs. I was involved in two businesses(that failed) before this. But I have learned more from my failures than my successes.

My question is basically revolves around how much of the net profits that are made each month are put into making money next month. If I make 1K and reinvest 200$ of that, it would be a 20% of net profit reinvestment. But I was planning on reinvesting every penny of net profit I make each month so as to build up revenue faster for next year. If I make 1k, I reinvest 1k and so on until the start of 07. This is a long term plan for me as my goals are 30 sales a day eventually, I would just rather reach that point sooner even if it requires pocketing 0$ for 10 months.
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Old 2006-03-10, 12:59 PM   #4
Toby
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OK, that's pretty much what I thought you were asking.

I would agree that reinvesting 100% of net profit for the first year is a good idea, assuming that you will have some net profit to reinvest during the first year. When I got back into this biz two years ago, after a lengthy hiatus, it took me 6 months just to get where I was making enough each month to cover my hosting fees. There's a huge learning curve.
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