A capital allocator decides how to commit money across competing uses. Your choices can include reinvestment, reserves, debt repayment and distributions, judged against goals, risk and available resources.

Compare what the money could do

A leadership investment may reduce near-term income while supporting your time goal. A distribution can support personal needs while reducing the company’s cushion. A worthwhile growth project may be unaffordable at its proposed time. Keeping resources available can itself be a supported choice.

Management develops the operating case. Authorized owners and directors make the decisions reserved to them. One person may hold more than one role; each perspective still matters. A personal investment after a distribution is a separate decision involving your wider finances.

Use current financial and operating support to examine cost, benefit, timing, obligations, downside and execution capacity. A forecast provides an estimate under assumptions, not permission to spend or evidence that the result occurred.

Follow the choice into actual use

Record the authorized decision, responsible person and review point. Compare actual experience with the original reasoning and decide whether to continue, change, stop or hold. Monthly information can prompt action; quarterly and annual reviews provide room for broader comparison. Urgent decisions need not wait for quarter end.

M26: Capital Allocator explains the working practice and exact requirements. You can establish it while remaining CEO and owning one business.