Does a smaller business mean smaller profits?

[akinlolu99]

No, a smaller business does not mean a small profit as a matter of fact there are lots of small businesses that can generate so much profit and lead to a large-scale Enterprise. I don't believe yes anything called small-scale business just that the available capital is no much for the kind of business that might be desired at the moment in time.

 

[Shigobad20201]

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.

You are quite right , smaller business does not necessary means smaller profits , there are business that are small and the market are moving quickly andnthe money the business is making is even more than big store.

 

[Grandeur]

True, the more capital you input in a business the more profit you stand to gain but it still pays to start small so one can understand the business

 

[jeff87]

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.

That's right if small businesses can yield sales and make big profit. To make the small businesses to grow, the profit is supposed to be reinvested. In that case, the profit from the reinvested money will again and again be added to the business capital. I believe after numerous times of reinvestment the company grows.

 

[Ruth]

For me a smaller business means smaller profits, imagine you have a larger business in then you'll be able to get your product directly from the company which makes it cheaper.

 

[Richard92]

Smallishness of a business doesn't mean the profit will be small, it all depends on the type of business that you are doing, every successful big businesses in the world all started small and grow bigger later wrong with dedication, commitment, perseverance and consistency, expansion your business to the next level is sure.

Actually some smaller businesses have smaller profit but not all small businesses normally bring out more profit there are some small business that also bring out huge profit.

 

[Skysaint]

That's not actually the case, running a small business doesn't mean that the profits will also be small. What determines the size of our business is entirely the startup capital and what determines the profits our business will yield us is the commitment and proper strategy we employ while running the business

 

[Jlife]

True, the more capital you input in a business the more profit you stand to gain but it still pays to start small so one can understand the business

Yes and it is ridiculous for you to compared a small shop to a big supermarket that ve invested so much money ,obviously the supermarket will be on the winning side in terms of profit.

 

[Kelly5]

I am afraid to say that this assumption holds true for small businesses as well as big businesses means big profits too for bigger businesses. It is a fact that the amount of capital one outs down in a business will determine the profit margin expected

 

[Alexandoy]

That's not actually the case, running a small business doesn't mean that the profits will also be small. What determines the size of our business is entirely the startup capital and what determines the profits our business will yield us is the commitment and proper strategy we employ while running the business

It depends on the type of business. A small home based business of selling cooked food can earn more than 50% of the capital in a day. Think if you can do that for 30 days, that is such a huge profit based on the amount of the capital.

 

[Rhapsody]

Yes a small business means a small profit while a big business means a bigger profit. There are some business that we think that are small. But when we make it big we will make huge profits with it. Bean cake business is a small business. But I have seen someone that made it big selling it in a big house and have many branches

 

[Blessingedidiong]

A small business doesn't mean having a small profit margin. I believe the profit margin of a business depends on the turn over the business have, the expenses incurred by the business and the fund management of the business. The size of the business doesn't affect the profit of the business and it is better to start a business small and grow it gradually.

 

[Ralphjoe]

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?

Actually a small business does not mean that the business will be making smaller profit because in some instances a small business can make a big profit despite their small size.

 

[Sotherefore]

A small business doesn't mean having a small profit margin. I believe the profit margin of a business depends on the turn over the business have, the expenses incurred by the business and the fund management of the business. The size of the business doesn't affect the profit of the business and it is better to start a business small and grow it gradually.

Nice one blessings from Akwa ibom, but you need to understand that most people will likes to do business which companies that are more advanced in terms of size and ability.

 

[kayode10]

There are some small businesses that are raking in huge profits due to the low operational cost. It is pretty much easier to expand profit margin with small scale business.

 

[Dowenship]

Smallishness of a business doesn't mean the profit will be small, it all depends on the type of business that you are doing, every successful big businesses in the world all started small and grow bigger later wrong with dedication, commitment, perseverance and consistency, expansion your business to the next level is sure.

Then we are saying the same thing! Because when the business was small the profit was also small that doesn't mean the business wasn't gaining it capital... the profit is just an addition to the capital to make it grow....

 

[Richard92]

Smallishness of a business doesn't mean the profit will be small, it all depends on the type of business that you are doing, every successful big businesses in the world all started small and grow bigger later wrong with dedication, commitment, perseverance and consistency, expansion your business to the next level is sure.

No similar business cannot be similar profit most people have similar businesses but do not make similar profit because the sales are different one can sell more than the other.

 

[eLdavis]

No similar business cannot be similar profit most people have similar businesses but do not make similar profit because the sales are different one can sell more than the other.

True and it also depends on what you consider as small, What you might see as small, another might see it as big and vise versa. We all have different opinions and perspective of things.

 

[Jlife]

It may not likely mean that a smaller business will generate a smaller profit but in most cases this is actually possible because people are likely to trust a bigger business compared to the small one.

 

[Sotherefore]

There are some small businesses that are raking in huge profits due to the low operational cost. It is pretty much easier to expand profit margin with small scale business.

That is why this will completely depends on the type of business you are doing that will determine the profit you will be making, it nice and we really have to understand this.