I certainly lean heavily in the direction you describe; cashflow or better still, net profit is the lifeblood of any real business. So if you're barely staying

I certainly lean heavily in the direction you describe; cashflow or better still, net profit is the lifeblood of any real business. So if you're barely staying alive, anything that doesn't soon lead to revenue and acceptable gross profit is a luxury you can't afford. On the other hand, if you are an owner with a steady profit-generating machine you want to keep it running as smoothly as possible as long as possible. Investing a relatively small amount directly in your employees' professional development is a way to help this happen. Employees like to stay current and feel like you care enough to keep them current. Going from spending $0/yr on someone for training to $1000/yr will probably make them a lot happier than a $1000/yr raise. That might be as simple as giving a group a collective budget for books and courses on anything related to your business. There is a definite cost when a core member of your team, no matter which level, moves on due to boredom. This is one way to keep them a little happier. Some aspects will show up in your company's resources beyond just happier employees too.