Does a smaller business mean smaller profits?

[Skysaint]

I think if we are talking about investments then I would agree with you but in this case, I don't think it's always so. Smaller business can yield returns in your investment real quick than that of a large business setup.

 

[Immilash1]

I may state that the size of a firm may decide the size of profits it will be able to make since the more goods you can produce, the more profit you will be able to make. I, however, am unable to turn a profit and would prefer to begin with a small firm.

The truth, if you have the knowledge I believe that's very much possible, what really matters here is having the right knowledge, if you have it you'll definitely enjoy.

 

[frederick_9]

You can't possible operate a smaller firm to make a significant amount of profit; the majority of people who run tiny businesses aren't really making much, and if they were, they could have grown their operations further.

 

[Sincerem]

Yes smaller business mostly means smaller profit , but however in fewer cases there are some smaller business that are likely to generate huge profit though it depends on the environment and some few other factors.

 

[Shigobad20201]

A smaller business does not neccesarily mean you are making a smaller profit , for example selling of beans cake might be a small business but if you are in a well populated environment , you will be making more profits than some big companies .

 

[Setho]

We have had businesses that are worth less than $1000000 and less than 100 employees make very significant profits. The most important thing to you is that you should be building something great and you should go all out in your marketing.

 

[Joe2]

Why would smaller business mean smaller profit . Because I ran a small business of my own and it it really bringing in great figures

 

[nana kwasi1]

I may state that the size of a firm may affect the size of profits it will be able to make since the more goods you can produce, the more profit you'll be able to make.

 

[Ayojesu]

no, small business, does not mean small profits, there are many small businesses that are making massive profits like a big business, just know what you are doing

 

[Skysaint]

It really doesn't mean smaller profits because it all boils down to the connections and networks your business have. A small business could be selling and stocking back goods three times at a stretch when a large business is hardly making sales.

 

[Planbizzle]

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?

A company's size does not alone determine how much profit it makes. The profit margin of a business is significantly influenced by a variety of variables, including the manufacturing cost, pricing policy, customer base, and managerial choices.

 

[Good-Person]

Yes smaller business mostly means smaller profit , but however in fewer cases there are some smaller business that are likely to generate huge profit though it depends on the environment and some few other factors.

Well, generally, smaller businesses might generate small profits and the primary reason for that is the fact that the investments in those businesses are smaller.

 

[Connor909]

As they often have less capital, fewer resources, and a smaller customer base, smaller enterprises typically make lower earnings than larger ones. The specialized services or goods and capacity to run with a leaner structure of certain small enterprises, however, enable them to make large profits.

 

[Trey]

There are some small businesses that doesn't equate to low profits. It all depends on the rate of turnover in that business. POS businesses are regarded as small businesses in my place but a well sited POS business pays 3 times the average salary of a banker. Some small bars and restaurants you see sell up to 10 crates of drinks a day and a bag of rice respectively. It depends on how huge or contracted the customer base is.

 

[Robert90]

The profitability of a company is not always correlated with its size. Smaller firms can still be lucrative even if larger companies have more resources and higher revenues. In the end, rather than merely its size, a company's profitability is determined by a number of variables, including its industry, management, and market conditions.

 

[Immilash1]

The profitability of a company is not always correlated with its size. Smaller firms can still be lucrative even if larger companies have more resources and higher revenues. In the end, rather than merely its size, a company's profitability is determined by a number of variables, including its industry, management, and market conditions.

I concur with you sir,i if you have a large business or company you're going to be a new a considerable amount of profit from it or like having a smaller company.

 

[Jonaville1]

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.

The smaller your business is, the smaller your profit will be. This is why it is important to expand your business after a while. Compounding can help you expand very fast.