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The Smart Way To Invest In Your Business

Financial EfficiencyThere’s only so much capital to go around. Here’s how to get the most out of it.

You are starting a new company and need to find customers. An ad agency just presented you with a slick new campaign promising to do just that. Cost: $250,000. Good investment or bad?

Millions of small-business owners find themselves in similar situations every day when trying to decide how to invest (and re-invest) in their companies. There are myriad nuances to making these decisions, but there is a fundamental principle that guides all of them: getting a reasonable, risk-adjusted return on each dollar invested.

This article originally appeared on Forbes.com.

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