4 ms·
Ask HN: How much profits do you reinvest in your own startup?
I am a solo founder of a bootstrapped startup, and currently I cash out 5x my average market salary every month.
I know the market is big, so there is a lot of potential to grow (at least 5-10x current revenue), but this would require to hire more people and reduce my profits to 0. Like many other bootstrapped startups I have spent a lot of time with little or no income and I don't come from a rich family, so now I'm enjoying this moment with money and saving a lot.
I wonder when to stop focusing on growing my own net worth and investing in the growth of the startup. Do you recommend to first focus to accumulate a net worth as X times the annual cost of living? And what % of net profits do you suggest to re-invest on growth?
- Simulacrum0 5y agoWhile every business's decision on 'reinvest' vs payout should be unique to their needs, do consider what degree of tax-writeoffs/claimed-losses/depreciations you're likely to gain from 'reinvesting'. Some Gov't rules, such as in the USA, are very favorable towards doing so. Good hunting+