A good business pays its expenses
We are going to look at this article in two contexts; the area of expenses and true profit. It is only an entrepreneur that understands an entrepreneur more. This I can say from experience. Someone close to me just joined the entrepreneurial ship and my message was, ‘welcome aboard’. I hope you know that 500K incoming doesn't mean the business has seen profit? It can be difficult to tell an outsider.
No matter how well a business is pimped, if the owner of that business tells me he or she is not in profit, I wouldn't be arguing. Standard is good for business, it is an applied tactics to draw in potential customers, nevertheless, ALL the ups and downs has a score board summary.
Have you ever claimed doing business but having to be pulling in external cash every NOW and then just to supplement for its daily experiences. If not then well, you were a far better business newbie than I was because I actually, I did. There was nothing too special about profit by that time for us, the idea was just to keep business open. Services were rendered at a loss, staff payment and monthly transportation followed suit.
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How about feeding? Ok, I had a backup job that was filling in the blank spaces. Oh! Poor Dani! It was indeed a rollercoaster at those early times, we can't even account for the wasted time and energy in total. Or maybe the advantage is that I learn the hard way; ‘experience’.
What's the first criteria of a good business? At least it must be able to cater for its own experiences. Profit aside, let's just be sure we won't have to break into another pause just to keep it in existence. It can be very frustrating and discouraging at the same time. From here, strategies to meet up with profit can be easy.
Looking away from meeting up expenses, what is even profit in the first place? How many mistaken a non-profitable business for a profiting one? Profit goes beyond chicken change, so if your business is operating on a hand to mouth, it is not profitable from a professional table. How does such a business fight rainy days, how does it reinvest on structures, equipment and facilities and how does it even meet up with expansion?
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In my own views, I can term a business profitable if it can meet expansion in five years. Let's say the business is able to generate capital outside expenses that can plant a branch of such worth. I am not saying other sectors will have to suffer the fate for this expansion. Ok, I could remember when I had to starve myself just to grow my brand. It wasn't the solution here, get out of your shell and attract the needed customers for cash flow
To conclude, let me add, I will summarize by merging expenses and profitability together. It is something I keep telling my co-partner. I am not against expenses but rather unprofitable expenses. It has been why I have been in a rollercoaster brain drilling research for a while. There are important changes I am looking for in business from this year onward. Business had to professionally pay for its expenses while on the other hand remaining very profitable. Let's look off the idea of bad economy, many are staying in profit, I am an entrepreneur and I can't be profit exempted.
This is an article covered by dani-EL; a broad niche writer. I write on faith, life facts and daily living, business and economics, small scale and daily businessing, cryptocurrency and technology. And yes, I do cover articles on financial education and investment updates. And note, if I happen to be a financial adviser to you, the TOP financial advice should be ‘DYOR’ (Do Your Own Research), I can't afford to break your heart.
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