Does a smaller business mean smaller profits?

[kayode10]

Small business does not means small profit if you know what you really doing. There's a possibility of making more profit with your small scale business. the reason is that your expense will still be low.

 

[Maayong]

Yes it does means smaller profit but with luck and profit can make a big profit for a small business

 

[Chizfab]

That is a fallacy, there are a lot of business that doesn't require huge office space or capital bit yet they generate profit and high turnover. It's not about the size, though it matters in some areas but it's about how well a business is run, using productive methods and steps.

 

[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?

In my own opinion I think it has to do with the individual involved, so person

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?

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 it depends on the individual involved, some person might be handed big business but if they are in experience they may not make much profit so it depends on the person handling the business either big or small

 

[YERUS]

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 a small business will mean smaller profits as compared to a big business. A small business produces small, has low product demand as compared with a big business, therefore, the profit margin would be small.

 

[Lucy ID]

I can say it's depend on the type of business carried out because there are small businesses that makes more money than any some businesses due to what they do

 

[tray591]

I can say it's depend on the type of business carried out because there are small businesses that makes more money than any some businesses due to what they do

Its depend on the type of business and your location if you site a small business in a good location you can make big profit and also planing is another thing that do brings good profit along side with good managment this could help improve the quality of small business thus making you earn more

 

[Josan]

That is not true, a smaller business can be a bigger profit depending on the future projections and targets of the establishment.

 

[Skysaint]

I think in most cases it doesn't, when you're running a small business it usually means that your business isn't developed to it's full potential or attainable height so it's normal that you make less profits than a large scale business

 

[Odunladeseunvictor]

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 it depends on what the business is all about, your business might be small and you earning big, business are not determine by the size but by the output

 

[tyrim88]

a small business can later be expanded into a big one if a business has many customer.if you have a small business and you sell good product you are going to have many customers which will lead to more profits.

That is actually a good way to look at a business that have a huge potential,small business can actually start small but must definitelly not remain small,good administrative management and financial discipline will go a long way to push it higher.

 

[Immilash]

I can say the size of business may determine the size of profits to generate because the more you capable to produce much product it's the most you gain a profit. But as for me I can not make a profit trick me, I will like to start from small business.

that's true,the size of the business might determine the profit but not all time's , some times we start from a little and it later become something great and big.

 

[Godspower]

A small business will likely fetch you little profit as compared to a big business. Most small scale businesses are just after profit to meet ends meet while big corporations are usually after expansion and high returns.

 

[Sincerem]

When you're operating a small business, you aim is to maintain a reasonable profit. Small businesses wouldn't go above their limit of profit, but their is no barrier to what an entrepreneur will earn in the future, because the business can be expanded.

 

[Laurentta]

Small businesses doesn't mean small profits. It depends on the type of business and also how much hatdwork and capital you invest into such business.

 

[Good-Person]

It is true, small investment, small income, large investments also the returns on profits will be higher. But it is good to differentiate that when it comes to small businesses, it is not referring to the place. since a small business can rent a place as a warehouse and make large investments, where its profits will also be large.

I think there is a difference between income and how big your organization is. Usually, bigger organizations generate more profits than smaller businesses. But it entirely depends on the size of investment. A big businessman may invest $500 and a small business might invest $1,000 and generate more profits. Size is irrelevant, but the investment amount matters.

 

[Sariana23]

I think there is a difference between income and how big your organization is. Usually, bigger organizations generate more profits than smaller businesses. But it entirely depends on the size of investment. A big businessman may invest $500 and a small business might invest $1,000 and generate more profits. Size is irrelevant, but the investment amount matters.

It is totally true, you can even start a business without having a location in terms of premises, you can start from home. The amount of money in the investment of any project is what will define the amount of profit you can have, as long as there is a good administration.

 

[tray591]

I can say it's depend on the type of business carried out because there are small businesses that makes more money than any some businesses due to what they do

smaller business dosnt means small profit its means you need to put your own effort and manage the business properly when that is done then you will know that your business will bring better result and profit

 

[Justin]

Generally speaking, the term small business is used for the business that has a small start up capital and a small paid of capital. How do you suppose to earn big profits from small investment.

 

[Kaffyfolla]

Life has gone beyond smaller business earn smaller profit, profit made on business depends on the type of the business you engage in, the plan laid down will makes the business succeed