Allocate your capital wisely

Decide deliberately how to use the money available to your business, including what to reinvest, keep in reserve, use to repay debt, or distribute to owners. Compare your options by the benefits you reasonably expect, how long those benefits will take to arrive, the uncertainty involved, and the effect on available cash.

Include spending needed to maintain existing equipment and service standards alongside opportunities for growth. Choose investments whose expected benefits justify their full costs and risks while preserving your ability to meet commitments.

Base owner distributions on available cash, upcoming obligations, future business needs, and any applicable restrictions, so those payments fit the company’s financial capacity.