Thursday, December 1st, 2016
The primary goal of any business, is to stay in business. We need to bring in more money than we spend in order to stay in business.
In order to bring in any money at all, we need to sell a product or provide a service that other humans can afford and are willing, even eager, to pay for.
For that, we need to make and to keep customers, having a mindset focused on the needs of our customers. Without customers and a product or service to sell, it is not possible to have a business. But we need to be profitable, we need to bring in more income than expenses.
There are of course wrong ways and right ways to run a business, to generate a profit, but the bottom line is without a profit we are NOT IN BUSINESS so all bets are off. If we want to create change, if we want to add value to customers and society, it is much easier to do if we have a profitable business.
I am not saying that to make a profit is the only goal, nor I am saying that the goal is to make profit maximization. The point is that to stay in business, we need to make a profit, so this is the base line. Business makes a profit to exist.
Summing-up: Profits are a critical measure of the health of a business. And just like we want our bodies to be as healthy as possible, we want our businesses to be as healthy as possible. However, the best way to get fit is “to profitably anticipate and satisfy customer needs.”