- November 2, 2018
- Posted by: brianwrigley
- Category: Business, Business Coaching and Training
An idea that has established itself in today’s business world is to give to the community. More and more businesses around the globe are looking for ways to give back to the community by having charity drives. One way they do that is by cutting their profits and giving them out.
The words ‘Not for profit’ are often praised in the startup phase. The words mean that the company is not looking to make money or profits, but instead they are going to have lower prices and not undermine or exploit the people in the industry they are going to work in.
If you look closely at this proposition, you will realize there is a big misconception here. The word profit is seen as a predatory word, but it’s really not. The word profit only means that you have financial gain from the transaction. The amount earned is more than its costs. That’s it. It’s not a phenomenon that’s going to make your business look bad.
One way to look at profit is to understand the objectives of doing business. A person starts their business to provide a service or product to customers who require it. But it does not mean you do this out of your pocket and eat through your capital. Making money is essential in any business. If the business charges lower prices, soon the business will run out of resources to run on. Profits make the running of business smooth exciting. You want your business to be successful and bring you success.
If you think that by not making a profit you are doing a good deed, then you should rethink your objectives. We all have needs and wants. We all go and buy products from shops and pay for it. Where does the money you pay come from? It’s from the business that you are running. Everyone desires to better their living standard and use some higher priced products.
When we pay a higher price for a product, we are paying for the benefits we get from it. It’s not wasting money.
Your business works in the same way. The product or service you provide is not for charity. It’s your hard work and you deserve the price you want to charge for it. People who are consuming your product are getting some kind of benefit from it, and should pay the money you are charging. People only buy a product when they see some benefit in it. So it is a win-win situation. You get the money you want and they get the service they want.
Profit is what drives the business world. If you do not make a profit, you will soon run out of motivation to run your business. The profit you make while doing business is going to motivate you to improve your work and make more money.
Don’t buy into the myth that making money is wrong or looked down upon. People who root for you want to see you do well in business. Profit is not a bad word. It’s something you deserve.