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Money to Burn?

Before you go on a spending spree with your surplus cash, get your priorities straight.

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This story appears in the July 2004 issue of Entrepreneur. Subscribe »

Given that most businesses have been in hunker-and-save mode for the past few years, "find ways to spend excess " probably ranked last on the average entrepreneur's to-do list. But with things looking up, owners may find themselves surprised by a surplus in their company's coffers. It may not be millions, but it could be a sizable enough wad to burn a hole in the company's pocket.

The key to smart spending and investing is to be neither overly cautious by leaving it all in a low-interest-bearing market account, nor overly optimistic by rushing to staff up or buy a new facility before you know how far you can stretch the money you're left with.

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