Profit Retention Strategy

A Profit Retention Strategy is a business approach focused on keeping more of the company’s earnings rather than distributing them all as dividends to shareholders. By retaining profits, a company can reinvest in its operations, fund new projects, pay off debt, or build up reserves for future needs. This strategy helps ensure long-term growth and financial stability, allowing the business to expand, innovate, and respond effectively to market changes. Essentially, it’s about holding onto profits to strengthen the company’s future rather than sharing everything with investors right away.