Does a smaller business mean smaller profits?

[Abigael]

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

That is right. If you need more profit than what you are making now, you can always expand your business. Which can be done by increasing your capital and stock.

 

[kayode10]

It is possible to make huge profit with small-scale business if there is a wide margin between the cost of production and the selling price.

 

[BrolySSJ]

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

The output is very important because naturally there is going to be a profit margin on each item that you sell and therefore the more that you are able to produce and sell the more that you will have been making in profit.

 

[Jlife]

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.

Ok if a smaller business is able to generate $200 on daily basis which sometimes is always impossible then a big established and well registered business might be able to generate up to $500 on daily basis.

 

[BrolySSJ]

Ok if a smaller business is able to generate $200 on daily basis which sometimes is always impossible then a big established and well registered business might be able to generate up to $500 on daily basis.

This may be the case, however established businesses can still be small. If you look at the size of some of the cryptocurrency exchanges, they are rather small with the number of users but generate large profits daily.

 

[Jlife]

This may be the case, however established businesses can still be small. If you look at the size of some of the cryptocurrency exchanges, they are rather small with the number of users but generate large profits daily.

This may be the case, however established businesses can still be small. If you look at the size of some of the cryptocurrency exchanges, they are rather small with the number of users but generate large profits daily.

Even if they're generating large profit on daily basis but this cannot be compared to a large cryptocurrency exchanges that had a lot of people, it is still a small business compared to other larger one.

 

[BrolySSJ]

Even if they're generating large profit on daily basis but this cannot be compared to a large cryptocurrency exchanges that had a lot of people, it is still a small business compared to other larger one.

I do agree with you and larger crypto-currency exchange platforms are able to generate a larger profit, however this may not always be the case if they have concerns and reputation problems like binance is havign now/

 

[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.

Smaller business does not make smaller profit this is because most times you make more profit from small business that are very lucrative.

 

[BrolySSJ]

Smaller business does not make smaller profit this is because most times you make more profit from small business that are very lucrative.

Smaller businesses could mean that your expenses are lower and therefore this will increase your profit margin and that could be a factor in helping you to increase your profit.

 

[Jlife]

I do agree with you and larger crypto-currency exchange platforms are able to generate a larger profit, however this may not always be the case if they have concerns and reputation problems like binance is havign now/

Binance is one of the best cryptocurrency wallet I know and exchanges. I've been using it for a long time and I do not see anything wrong with it ?what bad reputation are they having ?
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I do agree with you and larger crypto-currency exchange platforms are able to generate a larger profit, however this may not always be the case if they have concerns and reputation problems like binance is havign now/

Binance is one of the best cryptocurrency wallet I know and exchanges. I've been using it for a long time and I do not see anything wrong with it ?what bad reputation are they having ?

 

[Hojo]

Small scale business even the owner knows it's small so he shouldn't await a large a income like other big company, comparing with investing on stock with a small fund it's just look the same

 

[Ceeny007]

As much as profit is very important in business I believe everything should be taken one step at a time. As the business grows and stocks grows profit will grow too

 

[Ralphjoe]

I think we take a small business lightly. Running a small business does bring much profit depending on the kind of product you sell or service you offer.

Terrace on very rare occasions where by smaller businesses the big profits and I think that this kind of times are when a country's economy is in room end of time but the big companies and the small companies will likely give big profits.

 

[Trexxxy]

The 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 business in the world started small and grow bigger later wrong with dedication, commitment, perseverance and consistency, expansion your business to the next level is sure.

If it is a small business then the profit will be small as well. It isn't possible a small business sells more than it has in stock, which is very small, it only means that the profit will be small. When the business starts to expand profit increases.

 

[JoeTom]

Small business does not mean small profit in the sense that starting a small business with the mindset or target of aiming big can end up making that small business a big investment.

 

[Sotherefore]

Yes 90% of small businesses are likely to generate smaller profit because they cannot operate like an industrial business that will attract a lot of people to buy products and most smaller business are always handle my local people.

 

[Kubiat-Abasi]

Not necessarily, smaller business doesn't connote small profit. There are certain products you sell on a small scale and you make good profit overturn.

 

[Toyoabasi]

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?

I think I will go with the opinion that small businesses mean small profits.
You can't compare the profits generated by a big company to that of a small company. The higher your production rate and product-demand, the more profits you attract.

 

[Yhubee]

Not in all cases, it depends on the kind of business involved.there are some small scale businesses that give even the same profit rate as large businesses.

 

[Tislad]

First of all everyone business started small so the profit you make having a small business is quilt different from the profit you make when your business is large, but doesn't mean you were making lesser profit when your business was small.