Does a smaller business mean smaller profits?

[Chibson]

of course you cannot compare small businesses to the established big businesses because the established big businesses makes a lot of profit.

 

[Mayox25]

The resources invested in a small business is proportional to the profit it makes, because there are lesser overhead, expenses unlike the so called big business that you'll think are making much profit but are weighed down by huge overhead, running costs.

 

[Josemendez]

Profits are never calculated by the size of the business. The profit is a function of how the business operates ,whether it is able to meet up with the demands of the customers .

 

[Jsoliu004]

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Small business owner-managers usually agree quite readily that growth requires investment. To them, however, the need for cash seems only temporary. Profitable growth will produce greater profits and hence, they conclude, more money. Nearly every owner-manager hears at some point the financial principle that cash flow equals net profit plus depreciation and other noncash expenses. Owner-managers of many fast-growing companies, however, cannot avoid the gnawing feeling that somehow the principle doesn’t apply to them.

 

[tyrim88]

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.

Small business does'nt maen that the profit would be small,because the margin is almost the same,but the difference is that of size and capacity which will make the big busineses to capitalise on turnover.There is no difference

 

[BrolySSJ]

Of course, if you have a small business the profit will also be very small.

If you want a greater income then you will also be needing big time capital.

Not necessarily because if you think about a small business you might be able to operate a large now customer bases outside of a small business and this can help you to develop a large profit as well. When you have a larger business you have a lot more that you need to account for and as a result the profit can generally be smaller in relation to what you are doing.

 

[kayode10]

Small businesses can also yield large profits if there is a lots of sales. Small scale business has the opportunity to make more profits due to less resources the put in factors of production.

 

[Ella1003]

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?

Looking at the cost and risk involved, the small scale business will be best to start up with, profits might not be big from start but you can always go bigger depending on demand.

 

[Senator]

Yes, I strongly do believe that a smaller business means a smaller amount of profits. Because the bigger ones capital in a business, the bigger will be the profit returns logically.

 

[BrolySSJ]

Looking at the cost and risk involved, the small scale business will be best to start up with, profits might not be big from start but you can always go bigger depending on demand.

Generally it is a very good idea to start off a small business before you look at investing in a business that is of a larger size because it will provide you with the best experience in order to try and better the business as you proceed further.

 

[eLdavis]

When a business starts small, at first the sales could bring forth small profits but that does not mean the business is bound to only small profits, with time it can grow

 

[Setfragil]

Generating little profits is not really a serious problem in running a small business, if the business is not running at a loss then with time the profits will increase to the level he want it to be.

 

[BrolySSJ]

Generating little profits is not really a serious problem in running a small business, if the business is not running at a loss then with time the profits will increase to the level he want it to be.

I think what you have stated here is very important because I think a lot of people actually expect that when they start a business that they will start to see profits right from the beginning however this is generally not the case and you have to build up to that point.

 

[Yusuf1]

Small business doesn't mean small profit as far as am concerned. The best way to make money with your small business is to always do aggressive marketing for the Business. With that it will be easy for you to make money with your business

 

[BrolySSJ]

Small business doesn't mean small profit as far as am concerned. The best way to make money with your small business is to always do aggressive marketing for the Business. With that it will be easy for you to make money with your business

I completely agree with you and it is good to see that people are not limited by the size of a business when it comes to the potential profits that they are able to make from the business as well because a larger business also requires a lot more maintenance than a smaller business and this will eat into your profits.

 

[Ralphjoe]

It depends on the type of business and the hands handling it, there are some large business that is being handled with careless hands yet still doesn't bring an amount of profit a smaller business would bring if managed by a very competent hand.

It is very true that the management of your business are very important when it comes to how successful your business can be and that is the reason why it is very absolutely important that we get the right team to manage and run your business for you so that the business can succeed.

 

[Setho]

It might actually not reflect that if you are going to create a small business means you are going to be having small profit but it is very rare for you to make large amount of profit.

 

[Thinker009]

Yeah exactly that's what it means tho , because some business needs more growth to actually make huge gains and get to the next level , I think it's exactly what it means

 

[Senator]

The bigger the Capita Investment in any business, the greater the profit potential of that business and likewise the smaller the capital investment in any business as well, the smaller the profit potential will be too

 

[Solutionav]

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?

Sometime starting up small business does not necessarily mean you will make low profit I think it has to do with the location where you start the business