News Formal

Is Your Family Business on the Path to Growth?

  • 📰 HarvardBiz
  • ⏱ Reading Time:
  • 19 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 11%
  • Publisher: 63%

Australia News News

Australia Australia Latest News,Australia Australia Headlines

A family business’s “reinvestment rate” — the percentage of all the profits that are reinvested in the legacy business or new ventures, instead of distributed to owners — is the single most important number to look at to determine whether the business is on track to grow. No other number is a better expression of owners’ intent.

Reinvestment rate is the answer — explicitly or implicitly — to the question of:When family businesses start focusing on reinvestment rate — rather than on profits or dividends — it focuses them on purpose and return on investment , rather than a cash cow for dividends . Reinvestment rate can signal whether your family business is on a sustainable path for growth or at risk of bleeding itself dry.

How high or low owners set the reinvestment rate is still the best signal of their intentions for the business in the long-term. In this article, the authors discuss how to determine the right reinvestment rate for your family business.For many years, Bethany didn’t ask a lot of questions about her family business, a successful third-generation technology company.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 310. in AU
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Australia Australia Latest News, Australia Australia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Dollar Tree to Close Nearly 1,000 Family Dollar Stores in Business OverhaulDollar Tree announced plans to shutter 970 Family Dollar stores and 30 Dollar Tree stores nationwide as it looks to overhaul its business. The move comes as the company aims to expand its food aisles and merchandise in the $3 to $5 range. The decision follows missed sales and profit targets and increased competition from rivals like Dollar General and Temu. Inflation-weary shoppers' focus on necessities also influenced the move. The company will close 600 Family Dollar locations in the first half of fiscal 2024.
Source: washingtonpost - 🏆 95. / 72 Read more »

GOP rep spotlights 3 key pieces of evidence that the Biden family ‘contradicted’ their business coverupRep. Byron Donalds, R-Fla., lays out the strongest pieces of evidence the GOP has against the Biden family and their alleged business schemes.
Source: FoxNews - 🏆 9. / 87 Read more »