Where to Reinvest Your Profits (Part 1): The First Three Levers of Business Growth

In my most recent post, I talked about choosing between a lifestyle business and a growth business. If you’re reading this, you’ve chosen growth and you’re committed to reinvesting 50 to 75 percent of your profits. The real challenge is deciding where that money should go. Spending alone doesn’t create growth. I’ve seen business owners throw money at problems and then wonder why nothing improves. Poor reinvestment is almost as bad as not reinvesting at all. This is part one of a two-part series on where to reinvest for the highest impact. Today we’re focused on strategic hiring, systems, and marketing. In part two, we’ll cover product expansion, infrastructure, team development, and a framework to choose the right investments for your situation.

Build Systems, Not One-Off Fixes

Before diving into specifics, remember that growth comes from connected systems, not isolated purchases. Hiring a salesperson without a CRM, investing in marketing without the capacity to serve new customers, or buying software your team won’t use are all wasted moves. Every dollar should strengthen a larger system. Ask yourself how each investment supports your current capabilities and what new opportunities it unlocks.

Lever 1: Strategic Hiring

Strategic hiring is often the fastest multiplier. A senior salesperson is usually the first critical hire if you’re still doing most of the selling. A strong B2B rep should generate three to five times their fully loaded cost, so at $120,000 all-in, they should produce at least $360,000 in gross profit. Avoid bringing in a junior rep too early unless you already have a proven sales system and time to train them.

An operations manager is another high-ROI hire if you’re still buried in daily tasks. Freeing up 15 hours of your week at a value of $200 per hour is worth $156,000 a year even before counting efficiency improvements.

A dedicated marketing person is essential for consistency. A marketing coordinator in the $50,000 to $70,000 range can own campaigns, content, and social channels. Past $5 million in revenue, you can upgrade to a more strategic role. You should see better lead flow within 90 days and revenue impact within six months.

If your business relies on specialized skills, a senior technical hire can elevate quality, reduce expensive outsourcing, and mentor junior staff. If you normally pay consultants $150 an hour and this person can replace that work on a $100,000 salary, you break even at about 13 hours of weekly output.

Lever 2: Technology and Systems

Technology and systems are the second major lever for growth because they remove manual work and increase scalability.

A proper CRM is crucial if you’re still tracking leads in spreadsheets. Tools like HubSpot, Salesforce, or Pipedrive often improve conversion rates by 15 to 25 percent and help you forecast revenue accurately. Just be sure to invest in setup and training so the system is actually used.

Marketing automation matters too. Tools like HubSpot or ActiveCampaign allow you to nurture leads automatically, and well-designed sequences often convert 5 to 12 percent of people who weren’t ready to buy initially.

Project management tools such as Asana, ClickUp, or Monday help teams save five to eight hours per person each week. Industry-specific tools are also worth exploring because every field has software that dramatically improves efficiency.

Strong financial systems like QuickBooks Online, Xero, or NetSuite give you real-time insight into cash flow, margins, and customer profitability. Many owners only uncover hidden losses once they have accurate financial data.

Lever 3: Marketing and Lead Generation

Before spending money on ads, make sure you have a strong digital foundation. This means a professional, conversion-focused website along with SEO and content that build authority. SEO is a six to twelve month play, but once it gains traction it becomes one of the highest ROI channels.

Paid ads on Google, LinkedIn, or Meta can produce leads quickly, but you must track your cost per lead and cost per customer carefully. If your average customer is worth $10,000 and you can acquire them for around $1,000, that’s worth scaling. Most ad failures happen because there is no clear conversion path, so make sure your funnel connects your ads to a landing page, then to your CRM and nurturing sequence.

Strategic partnerships are another underrated but powerful growth driver. Businesses that grow consistently focus on building referral relationships intentionally rather than relying on luck. Trade shows and events can also deliver strong ROI with the right preparation, clear goals, and reliable follow-up afterward.

What Comes Next

Strategic hiring, strong systems, and effective marketing are usually the best early reinvestments because they drive revenue and create leverage. In part two, I’ll explore expansion opportunities, infrastructure, team development, and a decision-making framework to help you choose the right investments. Your competitors are investing right now. Make sure you are choosing wisely.