Reinvest to build

BY MATTHEW D. MOHR

Few businesses can continually grow and prosper without the reinvestment of profits or acquiring new capital. Reinvesting in a business is like compounding interest. As you earn income, your reinvestment of this income gives you a larger base to grow from.

When considering the successful entrepreneurs throughout our region, most of them kept the bulk, if not all, of their wealth tied up in one main enterprise. Some ventured into other businesses, and some extended their wealth through investing in stocks, bonds and real estate. Most took the profits earned and put them back to work inside their primary business.

Great farmers learned the rule of reinvestment decades ago, and as a result many have created enormous wealth over generations. A superior crop year gave cash for more land and upgraded equipment. As reinvestments of farm profits continue, large super-profitable enterprises are the result. But agribusiness owners are not the only ones who have experienced success through capital reinvestment.

Bell State Bank is a fine example of an enterprise which has grown continually through dedicated reinvestment of profits. Bell State is now one of the region’s premier banking institutions. Not long ago it was a smaller depositor focused bank, but with each successive year the ownership added new locations and bought similar area banks.

By reinvesting profits and adding new capital through the bank stockholder-owners when it could, Bell State has become a premier banking institution of great size. Through this constant and relentless pursuit of banking excellence Bell State has grown to be a regional power and a leader in our region’s banking community. PB

Matthew D. Mohr CEO, Dacotah Paper Co. mmohr@dacotahpaper.com