How much should a small photography business spend on improvements?

dadecounty_hero: How much should a business spend on improvements?
I’m a junior in high school and to make extra money I started a small photography business. I’ve been keeping 40% of proceeds and putting the rest in a separate account for my business. Of that money that goes to the business, how much of it should I spend on improving my craft? This means lenses and better equipment. I don’t want to spend like ALL of my business’ money and have nothing if anything ever goes wrong or comes up.

Answers and Views:

Answer by rick
There is no rule. Save money for unexpected situations. Only buy equipment as you need it. Don’t start buying stuff because you have the money. Try to spend about 15% of your gross income on advertising and promotion. You may need some money for taxes if you are doing well. The government doesn’t care that you are in high school.

Answer by Aaron
For a new business, I recommend spending 30% to 60% of profits on improvements in order to increase future profits and build the business. Improvements are hiring employees, marketing, and adding new services.