Making a profit is essential for the sustainability and growth of any business. Profit serves as a means to drive innovation, and a way to contribute to the economy and society. But more than that, it provides entrepreneurs with the incentive to continue their ventures and potentially start new ones, allowing owners to achieve goals that go beyond financial success.
Every business has a reason why they started a business (aka a mission statement) and making a profit allows each company to achieve that ‘why.’ Apple’s mission statement is, “bringing the best user experience to its customers through its innovative hardware, software and services.” Walmart; ‘To save people money so they can live better.” Tesla: “To accelerate the advent of sustainable transport by bringing compelling mass-market electric cars to market as soon as possible.” TOMS Shoes, “ Improving lives. One for One.” Google, “Organize the world’s information and make it universally accessible and useful.” Aveda; “Care for the world we live in, from the products we make to the ways in which we give back to society.” Patagonia: “We are in business to save the planet.’ You get the idea.
Profit provides the necessary funds for research and development, allowing businesses to create new products, improve existing ones, and explore new markets. This innovation is crucial not only for the growth of the individual business but also for the advancement of industries and the economy as a whole. Companies like Apple and Tesla, known for their groundbreaking products, have leveraged their profits to invest heavily in innovation, setting new standards and creating significant value for consumers worldwide.
Profitability is a fundamental measure of a business's health and viability. A profitable business is one that successfully balances its costs with its revenue, demonstrating effective management and market demand for its products or services. Without profit, a business cannot survive in the long term, as it would eventually exhaust its resources. Profit signals that a business is meeting customer needs efficiently and can sustain itself, providing a stable environment for employees and suppliers.
A focus on profit encourages businesses to think long-term and make sustainable decisions. Profitable companies are better positioned to weather economic downturns and invest in sustainable practices. Profits allow businesses to reinvest in their operations by expanding facilities, or enhancing employee skills through training programs which provide livelihoods for individuals and families. Simply stated, embracing profit as a positive force can lead to a more dynamic, innovative, and prosperous economy and society.
Our mission statement: TO MAKE BUSINESSES MORE PROFITABLE BY ASSISTING OWNERS IN INTERPRETING KEY FINANCIAL REPORTS AND DELIVERING PRECISE BOOKKEEPING SERVICES.
In other words, we help businesses stay in business. Let’s talk about how we can help you achieve your mission.
