Dan Martell

You might have to build some systems or you just have to grow the team or build more capacity in that area of the business.

But the theory of constraint TOC is the right way to analyze where you should be reinvesting.

And finally, don't let your cash pile up just in case.

A lot of people hear, oh, you should have eight months of cash in your bank account just in case.

Move it to your holding company, leave it there.

Invest it out of there.

And guess what?

If you need it back, you liquidate it and you invest it in the business.

That strategy of taking the cash out and keeping that as an investment forces the business to grow.

The other thing about investing in your business is most entrepreneurs will get a 50% return on their investment in their business than taking the money and investing in other places.

And everybody's like, oh, I gotta invest in index funds.

I gotta invest in the market.

I gotta invest in private equity.

I'm an angel investor.

Guess what?

Not a good move.

So you've built the foundation, leveled up your skills and reinvested in your business.

Only after doing all that is when you start looking at other financial assets.

Before we get back to this episode, if you prefer to watch your content, then go find me on YouTube.

I have this episode on YouTube.