Brian KaskavalciyanCo-Founder, The Wealthy Contractor Inc. · I want to help you create more Success, Wealth and Freedom!

What is reinvesting in the business

Name: What is reinvesting in the business
Uploaded: 2026-02-14T15:07:38+00:00
Duration: 35 s
Channel: Brian Kaskavalciyan
Description: In this brief segment, Brian Kaskavalciyan interrogates the common business claim of "reinvesting in the business". He suggests that when a company says…

14 Feb 2026 · 1 min

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In this brief segment, Brian Kaskavalciyan interrogates the common business claim of "reinvesting in the business". He suggests that when a company says it didn’t make much because it reinvested, it often masks underlying financial weaknesses—specifically insufficient cash flow and low gross margins. Brian argues that a healthy business should first generate adequate profit; only then can a portion of that profit be deliberately allocated to growth. Without solid profit and margin, the notion of reinvestment is essentially an excuse for not having enough earnings to fund expansion.

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Well, we really didn't make that much because we reinvested in the business. And I'm like, okay, well, tell me more about that. What does reinvesting in the business mean? It sounds to me like you didn't have enough cash flow to be able to fund the growth. And so because of that, it looks like you're reinvesting. But what that really sounds like is you didn't make enough gross margin you don't have to, to get the right profit so that you could take a few points of your profit and use that money to grow your business.