Does a smaller business mean smaller profits?

[Esther]

It doesn't necessarily mean that the money will be small. There are small business that make up 1 million per month and that is not a small money. Management is the key to every business how you manage you resources matters

 

[gbadebo9]

It does not means when u have a small business what u will get at the end of the day will be small. Once u make decisive plan it may turn to produced big money as long as followed the laid down rule that u think can bring something big. Not all Small business bring small profits. For example when I'm doing cement business that I started with small money what I realized from the business is huge so it depends on ur plan.

 

[Xerryl]

No. Smaller business doesn't necessarily mean smaller profit. It will be down to how important the business is to the target audience. If the business moves very quickly in sales, you can expect the profit to be bigger.

Its not always about the size of the business, the rather the plans and strategies involved.

 

[tyrim88]

Profit making expecially when you deal in stock commodity is mainly due to the volume of your stock in the ware house.But one can start from the little stock he has and then upgrade to larger quantity.
As this would give you leverage on some discount and extra sock benefit for large purchase.

 

[Afrinish]

small businesses often can implement the same quality management systems found in larger corporations, they may face different challenges along the way. For instance, small businesses tend to have fewer human resources and less up-front capital to dedicate to quality initiatives. Upper management commitment and accessibility, however, can be stronger in a smaller business, and internal communications can be more straightforward.

The values perceived by small business personnel tend to become common factors in the personnel’s behavior and can become important factors that generate good long-term performance

 

[QalabDogar1906]

Urdu
English









Absolutely you have written brilliantly. Whenever we start a small business, the first benefit we get from it is that we have to invest less in it. Whenever we have to start a small business and we know it. Coins and we can make more profit and later we can go to big business and we can make more profit. We should start with small business in the business world.

Yes, small business mean small profit. Because in any small business your intevestmen is small so you get profit in small quantity. So, small business gives us profit in small quantity that's why we should do business with hard working and earn money for their family

 

[Muhammadawais]

You may be asking yourself, "What is a good margin of profit?" A good margin can vary considerably by industry, but as a general rule of thumb, a net profit margin of 10 percent is considered average, a margin of 20 percent is considered high or good and a margin of 5 percent is bad.

 

[Hamza1999]

There are several reasons why small businesses are likely to deliver better customer service than a large company. Being small means better customer knowledge. A small company is closer to its customers and requires fewer resources to learn what people want to meet their expectations.Depending on the industry, the defining factor is either revenue or number of employees. For example, businesses that fall under code 424110 (printing and writing paper merchant wholesalers) are considered small businesses if they have 200 or fewer employees.

 

[springtech]

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?

Smaller business doesn't necessarily mean smaller profit if you do it right. However you can't run a small business and expect to have the kind of profit a much bigger business has.
I believe if a business with low stock physical stock plays the right game he can still make good profit.
Imagine online businesses that do drop ship. They make profit without even touching the products.

 

[Abbeyola]

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?

In Most,cases small business owners make smaller profit,so that is the reason most small business organization always strive to expand their activities in other enlarge their coats and turn big,by doing this profit will be increased and business organization will experience growth.

 

[Kane]

Small business means small profits. It is not possible to generate $10K revenue from a business that has been established with just $1000. However, sometimes, miracle happens.

 

[Sotherefore]

That's a nice points from you,a small business means a small profit because alot of people will like to deal with the big standard business organisation which at this point you may not be able to compete with them if you are operating a small business..

 

[Sariana23]

Let us look at it this way. Profit should not be judge base on direct price but on percentage price. If I bought a pen for 20 naira and i sold it for 50 while my partner bought 5 pen for 100 and sold all for 190 naira. some will think he has made more profit than me which is not true. I have actually made higher %profit than him. So my answer is no. Overall profit can't be judge on scale of the business.

Excellent analogy, and it is correct, the size of the company does not imply its profit, this depends on the management and control of finances, as you reflect in your publication, a small company can easily obtain better profits than a larger one.

 

[Hopey]

The size of business will determine the size of revenue it will generate. Though it doesnt necessarily have to be some but to some extent the size of a business can decide the level of profit

 

[Saqibraza]

Also, the owner-manager's salary in a small business represents a much larger fraction of revenues than in a big company, often such a large fraction that little is left over to pay additional managers or to reward investors.

 

[Eodine]

Most of the time, small business would mean smaller profit because one of the main features of small business is few clients patronizing the business and smaller market size if these factors increase the size of the business would definitely increase.

 

[Victor001]

When they say smaller business,I think it means small profit, to me a small business is define by the number of service it can offer and the tentacles is spreads.

 

[Ziki]

At the first, a small business will not make much profit because most things are bought in smaller quantities. But that does not stop the business from gradually expanding

 

[Ayokex]

Yes it is, better management will make it a big business the you get big income

Definitely it is because the size of your business will determine how much profit to make. Most business owners realize this fact and they always ensure to expand their business in terms of production, customer base etc.

 

[Abigael]

I think profit is profit as long as you are earning higher than the amount you used to start the business. So the amount will be dependent on how much you invested in the business. If you invest large amounts, you get higher profits and vice versa.