Why re-investing profit is playing the long game (and it's scary)

This is my first post. I run Slingshot (useslingshot.com) - a swag giveaway platform.

I recently posted a tweet talking about how we've doubled our business revenue over the last year but our bank account is tighter than ever. This is because we are constantly re-investing (almost) every dollar back into the business. More efficient logistics, new hires, better marketing, new platforms, etc. Doing this has allowed us to remain bootstrapped, profitable, and with a ridiculously low churn rate but it has continued to add a looming fear over where the business will stand from month to month.

Re-investment is a gamble, and I think the aforementioned 'fear' is healthy. You are assuming that the business growth will continue (or at least not rapidly decline) and that everything you 'gamble' on will eventually make the business bigger, smarter, and more attractive to customers.

This is far from reality. Almost everything we do as builders shape the product and perception of the company one way or another. For example, you add a new feature that people asked for, and instead of being received with mass fan-fare, the launch is lackluster. You finally get to make your first hire and your customers get upset because they "can't talk to you as much anymore".

The above are hypotheticals but they are very real scenarios that will (if they haven't already) play out with your product. With growth comes change. It's natural and chaotic. It's up to us to respond in kind and with the mentality that the gamble of 're-investment' will pay off over time. There are no guarantees, but keeping a healthy mindset about you ensures you (and your team) keep moving in the right direction.

These thoughts keep me up lots of nights, but it's also the fuel that keeps me driven to keep building.

If you want to follow along with my progress, follow me on Twitter - https://twitter.com/howardcjohn