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Why should companies invest?
If you are an entrepreneur, you are a company owner and should therefore think about how to manage your company’s capital. In the short term, this means liquidity management and building a buffer for unexpected events. In the longer term, investments may be sensible to enable your company to grow and improve its profitability. When you have accrued cash that you won’t need for running the business, you should consider how you should invest this excess. Perhaps you will want to save for your pension or to prepare a growth or M&A plan for your company.
