Lately, I’ve been wrestling with the idea of reinvesting in my freelance business. The cash flow’s decent, but I’m unsure if it’s the right time to scale up. How do you all decide when to plow profits back in versus taking a bigger cut for yourself?
I keep it simple. Pay myself first, then look at what the business needs.
If I’m turning down work because I can’t handle it all, that’s when I think about scaling up. Maybe better tools or some help.
But I always keep a chunk saved. Never know when work might slow down or a big opportunity pops up. Having that buffer is key.
I don’t really think about it much. Pay’s okay so I keep going. Maybe buy tools if needed.
Man, this is a tricky one. I’ve gone back and forth on this too.
Here’s what I do:
- Set a baseline income
- Track busy periods
- Look for pain points
I figure out how much I need to live comfortably. That’s my baseline. Anything over that, I consider for reinvesting.
When I’m swamped with work, that’s a sign I might need to scale up. Maybe better tools or outsourcing some tasks.
I also pay attention to what’s slowing me down or causing stress. Those are good areas to invest in.
Last year, I upgraded my computer setup. Took a chunk of cash, but my work speed improved. Totally worth it.
Sometimes though, I just take the extra money and treat myself. Gotta enjoy the fruits of your labor, right?
No perfect answer here. Just gotta feel it out and adjust as you go.
Look, it’s pretty straightforward. Keep enough to pay your bills and live decent. Anything extra? That’s your growth money.
I’ve been at this for years. When jobs are coming in faster than I can handle, that’s when I think about scaling up. Maybe it’s time for better tools or bringing on some help.
But don’t go crazy. Start small. Upgrade one thing at a time and see if it actually makes a difference. No point throwing money at stuff you don’t need.
And always keep some cash on hand. You never know when work might slow down or when a big job opportunity comes up. Having that cushion lets you jump on chances when they show up.
For me, it’s all about balance and timing. I reinvest when I see a clear opportunity for growth or when I’m hitting capacity limits.
Last year, I noticed I was turning down projects because I couldn’t handle the workload. That’s when I decided to invest in better project management software and hire a part-time assistant. It paid off within months.
But I also make sure to pay myself first. I set aside a percentage of profits for personal income before considering reinvestment. That way, I’m not always sacrificing my own financial goals for the business.
One trick I use: I keep a ‘growth fund’ where I put a small portion of each payment. When it builds up enough, I look at what improvements could have the biggest impact. Sometimes it’s new equipment, sometimes it’s marketing. Depends on what the business needs at that moment.
Just remember, there’s no perfect formula. It’s about finding what works for your situation and being flexible as things change.
I usually just keep it simple. When my tools start breaking down, I buy new ones. Otherwise, I keep the money. No point in overthinking it.