Business size and profit making

[Alexandoy]

I agree that the profit does not depend on the size of the business. However, it is only the ratio that does not matter but not the actual profit. Take for example a small business of baking at home and selling to the neighbors. The capital is $100 and the starting profit is $5 that later on the profit rose to $50. That means a 50% profit that can even reach 100% if there are more sales. Now, the capital of $100 earned a profit of $100 which may be the maximum. In a big business with a capital of $100 million that earns 50% profit would have $50 million. There's the difference compared to a small business.

 

[Damismiling]

I agreed with that the size of business doesn't determine determine the profit. S small business can be making a good profits if the owner know what he/she is doing, the quality of product and its productivity can determine the profits when the business get customers. But what I also believe is that the more you gain market is the more your will be expand and is the more you will be getting a huge profits.

Yes you are correct,the size of a business does not determine the profit of the business, but the quality of service rendered determines the profit, also I would like us to consider things from this angle, the size of the business determine the labour force and the labour Force determine the productivity, so all small business must plan to expand

 

[Samuel77]

According to my own point of view, the size of your business matter alot. If your business is not big this is to say you don't have much worker and you don't have much equipment, you will not be able to meet up with the demands of your customer and you will not be able to get as much profit as you are supposed to get
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According to my own point of view, the size of your business matter alot. If your business is not big this is to say you don't have much worker and you don't have much equipment, you will not be able to meet up with the demands of your customer and you will not be able to get as much profit as you are supposed to get

 

[Presido]

Small business doesn't small profit because profit depends on the productivity of the business not on the area of the business whether it is small or big.

Whether a business is small or it is big it doesn't affect the profit and sales of the business .A small business may maximise it's profit at a huge cost.

 

[Smithkid]

Business size does not mean that the profit one will make there will also big and profits made in a business so not depend on the size of the business.
Before one started a business you need to do some research e.g about where you wanted to place your company or business and some question needed to be answer like How many company or an entity that are selling the same product you are about to venture in to? Is the place accessible to the customers? Do I have enough material to start the business? Which strategy to use to capture the mind of the customers? What will be the price of the product?

 

[Lekan]

It depends on the business you want to go into and the amount of the capital you are starting with the business that one will look out the way tour business will be large and firm and that will still determine the amount of the profit you will earning in the business.

 

[Rainlover207]

This is very correct. The size of your business, while it somewhat influences the kind of profit you will make, does not limit the potential of your business. With the right management you can expand and make more profit.

 

[Abbas ali]

One of the most important entrepreneurial decisions in organizing a business is realizing its 'size' as it affects in company and profitability of business enterprises. The term' size of business' refers to the scale of organization and operations of a business enterprise.

 

[Hasan Raza]

I agreed with that the size of business doesn't determine the profit. S small business can be making a good profits if the owner know what he/she is doing, the quality of product and its productivity can determine the profits when the business get customers. But what I also believe is that the more you gain market is the more your will be expand and is the more you will be getting a huge profits.

 

[ahmedo24]

The size of a business is corresponding factor to increase in the profit making of the business and also aids growth of the business in a very short time. If a business is big it gets more patronage than the smaller business arround.

 

[Richard92]

The bigger the business establishment, the higher the profit, that is why all business owners always increase the size of their business and sometimes have branches of their business nation wide just to get profit from nation wide.

 

[Mariyam]

If it is a fact that the profit ratio, (5), increases as size, (6), grows larger, then there should be a positive cor- relation between these two items. ... This is such a weak relationship that it would be of no value at all in predicting a company's profit ratio from the company's size.

Small business doesn't mean small profit. Profit making in business doesn't have anything to do with the size of the business. The management of business funds determines the profit margin of the business. Decision making, advertising method, quality of services rendered and packaging of both the service and the business owner affects the profit making of a business not the size.

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If it is a fact that the profit ratio, (5), increases as size, (6), grows larger, then there should be a positive cor- relation between these two items. ... This is such a weak relationship that it would be of no value at all in predicting a company's profit ratio from the company's size.

Small business doesn't mean small profit. Profit making in business doesn't have anything to do with the size of the business. The management of business funds determines the profit margin of the business. Decision making, advertising method, quality of services rendered and packaging of both the service and the business owner affects the profit making of a business not the size.

 

[GIFTMICHAEL]

You can not have a little investment and expect a bigger return.
The more you put in more money to your business the higher your profit.
You can't expect a little investment to give you profit like Dangote refinery.

 

[Tinaconcept]

A business that runs well and makes good profit is not know by its size if not so why do we see big businesses liquidating in no time that's to tell you that size is not profit. The management strategy matters. How the planning, setting and achievement of day to day goals matters a lot.

 

[kayode10]

Size does not determine the amount of promise you can make in your business. just because his business is small scale doesn't mean that you can't make large profit. And just because a company is very big in size does not mean that they are making most of the profit. What will you determine the profit is the product you are bringing to the market in all the customers are satisfied with it.

 

[chicnthin]

Yes, that's right. There are a lot of big companies that started as a small business. So it doesn't necessarily mean that a small business would only generate small profits. It's just really depends on how good it is being manage and products and services itself.

 

[Shayo]

Business size shouldn't affect profit making but operational efficiency or output is directly proportional to the organization size meaning that the higher the business size the higher the profit.
The small businesses often work with minimal revenue thereby generating small profits. But there is room for growth and expansion.

 

[jay]

It followers demand and supply curve, the higher your business size the more the gain. That's because you have enough product/main power to serve greater number of people over a period of time. Thus, profit is directly proportional to business size.

 

[Ifective]

The size of the business do not mean the size of the profit. But not in all cases. You do not expect a business started with millions of naira on a good ground to make the same amount of profit with a business started with a 100 thousand naira.
However, to an extent, the commitment and the way the business is run whether large size or big size will determine how much profit to get

 

[Nma]

I totally agree with you.... I don't know why alot of people think that small business equals small profit... Even though they earn less when compared to big companies that are already established they make alot of money based on the number of products they put out per day