Does a smaller business mean smaller profits?

[BrolySSJ]

Yes,if you manage it with good care and you applied good skills it will bring more good profit.
But when you handle it carelessly your business will not go good and you will never get good amount of profit

This is why it is so important that when you start a business that you have to look at the business plan and make sure that you account for each possible scenario that may arise as well, because this will determine the success that you could have.

 

[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?

The size of business always determine the profit you make, that is why most business you see grow today start small, after making small profit they reinvent the profit into the business it help the business to grow

 

[Ezekiel]

The rate at which one invest in a business matters alot,you do not expect someone who invest a large to get less profit than the person who investef little fund

 

[Ruth]

Basically yes, but then depends on the management structure. No matter how big a company is, if the management is poor, their profit would be small. So if the management of your small business is good, you would earn more.

 

[BrolySSJ]

The size of business always determine the profit you make, that is why most business you see grow today start small, after making small profit they reinvent the profit into the business it help the business to grow

Reinvesting the profits is very important in order for a business to grow. There is so many people that actually believe that the profits should be used elsewhere, however if you put it back into the business you can grow your profits even further with time.

 

[Immilash1]

Does a smaller business mean a smaller profits
Well I think that not it ,smaller business does not mean smaller profit ,it just needs your effort

 

[Ghost1]

Yes... U can't compare the profit from investing millions with that of the profit from investing thousands on a business, the higher the investment the more u tend to make

 

[Jlife]

The rate at which one invest in a business matters alot,you do not expect someone who invest a large to get less profit than the person who investef little fund

Obviously from your illustration people that are operating larger business are likely to make more money compared to those that are not using a large capital for their business.

 

[Alexandoy]

Obviously from your illustration people that are operating larger business are likely to make more money compared to those that are not using a large capital for their business.

Maybe it really depends on the kind of business. A small home based business of selling cooked food can earn 50% of the capital in just one day. Think if you can earn $100 in a day then that is big money in a week and much more in a month. A big business needs a big capital and has lots of overhead expenses.

 

[btaliat]

Naturally the capital determines the profit that would be accrued by a business person. For instance, you cannot compare the profit of someone that is doing a business worth $5000 with $3000

 

[jeff87]

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

I agree with you. The more input of capital in the business could mean more profit. Starting small and making the business big will take time.

 

[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?

The good thing about business is starting from your little corner where you are because every business have the potency to grow depending on the individual and the location, you can start small by using the profit to reinvest into the business

 

[Psalmseen]

Yes of course, the size of a business may determine the size of profit. In most cases, you can't compare the profit a larger business will make to what a smaller business will make. It's so different. The resources determines

 

[Kelly5]

Yes this is basic and simple arithmetic. If you start up a small business type for instance, your profits will be commensurate with the size of the small business. But you can always up your business size anytime for a higher level of profit too

 

[Makanjohn]

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?

Small business does not actually mean a small profit. Small businesses starts up with a little capital at start which yields a minimum profit wages at first. But if it's managed in a very good sense of business management it can yield you a very large profit and expansion of the business.

 

[BrolySSJ]

Small business does not actually mean a small profit. Small businesses starts up with a little capital at start which yields a minimum profit wages at first. But if it's managed in a very good sense of business management it can yield you a very large profit and expansion of the business.

This is a very good point and I think that there's a lot of people that want to start off as a business that is big however it is important that you take the necessary steps to grow the business in order to create a stable business environment.

 

[Setho]

A smaller business means there is an increased likelihood of small profit but then you can still make big profits even with your small business.

 

[Lens]

I know couple of small businesses that would make you more money than big conglomerates. I am into one recently and the profit I made is a lot higher than some big businesses I know. So, my submission suggests that the size of the business do not translate to the profit made in all cases.

 

[BrolySSJ]

A smaller business means there is an increased likelihood of small profit but then you can still make big profits even with your small business.

Small businesses can sometimes be easier to manage because you do not have as much expenses in terms of electricity cost and maybe rental as well and as a result you are able to increase your profit margin.

 

[Riciakenosha]

No,many small businesses earn large sums of profit and thats because of the business output when there is a business output that's what will determine how big the business is . business output is how much a business produces