Does a smaller business mean smaller profits?

[shakky2]

the question of does smaller business mean smaller profit does not Operate like that, although if the capital were too be much more then there may be increase in the profit to be realized but the fact that the business is still small does not mean you can't earn more profit

 

[Abisola]

A traditional assumption among managers has been that small businesses should use essentially the same management principles as big businesses, only on a smaller scale. Underlying that assumption has been the notion that small companies are much like big companies, except that small businesses have lower sales, smaller assets, and fewer employees.

We would argue, though, that the very size of small businesses creates a special condition—which can be referred to as resource poverty—that distinguishes them from their larger counterparts and requires some very different management approaches

 

[Luckboy]

No I don't think so that small business mean small profit it depend on how your market is moving and the way you structure your business and how well your product qulity is

 

[Oluwasayofunmi]

Concerning the question does smaller business means smaller income, no small business does not mean smaller in, because there are lots of small business that makes lots of money, for example barbing, baking

 

[Danny4cash]

When it comes to opening up a business, one of the thoughts that generally crosses our mind is whether to open up a big or a small business. Of course there are risks that are associated with each type of business, however does a smaller business mean that there is smaller profit margins as well?

The reason that I am asking this is that if you have a smaller business then you generally keep fewer of the items in stock as well and therefore this means that when you are purchasing it from your supplier that you will purchase less as well. We all know that when you purchase a lot of a product from a supplier that you generally get it at a cheaper rate and this is often referred to as a bulk rate discount.

However, if you are preparing for a small business you may not be purchasing enough stock that can allow you to qualify for this discount. Therefore, it is either you have to mark up the cost much higher or you have to have a smaller profit margin so that you can still be competitive in the market. Which do you think is the better option?

 

[Adesuwa]

Smaller scale business revenue is generally lower than companies the operate on a large scale. The small business administration classifies small business as a campanies that bring less than specific amount of revenue.

 

[Setfragil]

The size of our business determine the kind of profit we can make. If you start a mini business you shouldn't expect to make lion profit as somebody who is running a giant business. The smaller your business the smaller your profit.

It does not necessary matters for a business to be big before it makes reasonable amount of profits in it sales of products. A business might be small and still makes a better profit than some big businesses if they are not well managed or employed inexperience staff.

 

[ossai]

small business will surely give you small profit, take it like that , when you invest small you get small back as profit, when you invest big you get large profit back, most people don't understand this principles, they find it difficult to to upgrade and to make it big.

 

[GIFTMICHAEL]

It does not necessary matters for a business to be big before it makes reasonable amount of profits in it sales of products. A business might be small and still makes a better profit than some big businesses if they are not well managed or employed inexperience staff.

The higher your investment the higher your profit. When you inject money into your business the business will experience growth and expansion. People which is the big investors in cryptocurrency are the ones that makes a lot of money.

 

[Talibhussain074]

No it is not necessary to have small profits from small business. It depends on your business how your business is. How is your business quality You might earn a good profit from a small business. You should have so much experience that you can make a big amount of money from a small business.

 

[Alihaider]

You may be wondering how much the average owner of a company makes? The average income of small business owners is $73,000 per year, according to PayScale's 2017 report. Total income, however, will vary from $30,000 to $182,000 per year.

 

[Ridorz]

What you said is actually the truth because small businesses always attracts small profits why big businesses always attracts big profits. This is only true for all kind of business that is why all business is always aspiring to grow big because in growing big then it profit also grows bigger.

Yes, you are right. That is what I believe, the more your business is getting growing up is the more you will be getting profits. Therefore, small profit is for small scale business and big profit is for big scale business. The size if business/company will determine the size workers and productivity.

 

[Mazhar Malik]

It doesn't matter if the price cuts off the profits soon. Also, the salary of an owner-manager in a small business represents a much larger portion of the revenue than that of a large company, often such a large portion that there is little left to pay additional managers or reward investors.

 

[Abdul Naveed]

There are a number of reasons why small businesses are more likely to provide better customer service than large companies. Being smaller means better consumer knowledge. A small company is close to its customers and requires less resources to know if people want to meet their expectations

 

[Olubayo12]

Smaller business doesn’t necessarily mean smaller profit. The amount of capital involve usually determine the amount of profit you expect. You can not stock up a petty trade shop for 100,000 thousand selling provisions and be expecting to make 1million.

comparatively, a small business is not as wide in scope as a big business and this will automatically affect the total amount of revenue which in turn will automatically affect the total amount of profits, so it makes sense to say small Business means small profits

 

[Heatman]

No i dont think so'Smaller profit isn't reason of the small business... We can also earn more from our small buisness its depends on type of the business... There are many small business that are making huge profit than big companies, your small business might end up giving you big money

Well, from my experience in business for the past few years, you would only have to make profits from your business products and services sales in the right proportion of the price of your business products and services. So, the cost of your products and services determines your profit level.

 

[Jumoke12]

When it comes to opening up a business, one of the thoughts that generally crosses our mind is whether to open up a big or a small business. Of course there are risks that are associated with each type of business, however does a smaller business mean that there is smaller profit margins as well?

The reason that I am asking this is that if you have a smaller business then you generally keep fewer of the items in stock as well and therefore this means that when you are purchasing it from your supplier that you will purchase less as well. We all know that when you purchase a lot of a product from a supplier that you generally get it at a cheaper rate and this is often referred to as a bulk rate discount.

However, if you are preparing for a small business you may not be purchasing enough stock that can allow you to qualify for this discount. Therefore, it is either you have to mark up the cost much higher or you have to have a smaller profit margin so that you can still be competitive in the market. Which do you think is the better option?

The extent to which a small business can operate cannot be as wide as that of a medium or large business, so one would still be correct to say that the profit a small business would make can't be as much as the one a big business would make

 

[Anaya Ali]

When it comes to opening up a business, one of the thoughts that generally crosses our mind is whether to open up a big or a small business. Of course there are risks that are associated with each type of business, however does a smaller business mean that there is smaller profit margins as well?

The reason that I am asking this is that if you have a smaller business then you generally keep fewer of the items in stock as well and therefore this means that when you are purchasing it from your supplier that you will purchase less as well. We all know that when you purchase a lot of a product from a supplier that you generally get it at a cheaper rate and this is often referred to as a bulk rate discount.

However, if you are preparing for a small business you may not be purchasing enough stock that can allow you to qualify for this discount. Therefore, it is either you have to mark up the cost much higher or you have to have a smaller profit margin so that you can still be competitive in the market. Which do you think is the better option?

Obviously, if you are investing less money, you will have less profit. In order to get more profit, your investment amount should also be higher I started trading cryptocurrency with thirty dollars but from time to time my income has increased and nowadays my profit is also increasing.

 

[EMMANUEL]

I think I won't want to be biased with my statement in that fact about the statement, the reason is that when you say small scale business is similar to small profit, in my own view I will say that most of the time this fact might positive and likewise it is liable to be negative because the level at which you view might be through the current study of a small scale business or based on assumption that small business tends to receive at this same rate their business.

 

[Heatman]

The extent to which a small business can operate cannot be as wide as that of a medium or large business, so one would still be correct to say that the profit a small business would make can't be as much as the one a big business would make

Any amount of profit that you can make from your business products and services, will always be relative to your business capital. There is no way you can expect to make more profit from your business above the expected level of your sales.