Does a smaller business mean smaller profits?

[Meerab]

No i dont think so'Smaller profit isn't reason of the small business... We can also earn more from our small buisness its depends on type of the business... There are many small business that are making huge profit than big companies, your small business might end up giving you big money

 

[Shivay]

Yes the amount may be smaller in a smaller business since you have invested a small amount of money in it , The right way is invest some amount and when you gain profit , invest it in the business and expand it. It is the way of earning a successful business from a small sized business.
Agree?

 

[Seun4luv]

To determine if you are a small business , look at your industry, annual sales, and number of employees. For many companies, the standards size classification by employees is 200 employees or less.

 

[Setfragil]

If you understudy the business very well before you start it, it will eventually grow to something reasonable. But if you have a huge capital to start a business big without equipping yourself with the technical know-how to run it the business is likely to make less profit. The most important thing in business is knowledge and planning.

 

[Frank]

A small business doesn't necessarily mean that you are going to make small profits as far as I am concerned. What it takes is to focus on how best that you can make enough profits by marketing your products better. It is also worthy to note that selling under panic is not advisable too when you are a small business owner.

 

[Alexandoy]

Normally the size of the business dictates the size of the profit. You may agree that earning a profit of 50% is big enough. But if the business is small like a food cart with a capital of $60 only then the 50% profit is only $30 which is pretty small to our standard. On the other hand a large corporation earns 10% only but it is worth billions of dollars because of its bigness. When you start small the usual direction is towards growth of the business so that you will not stagnate. The bigger the size of the bigness, the more employment it can create.

 

[Asad Ali]

There are some businesses in which you can earn more profit by investing less money Fast food, for example, is a business that does not require a lot of money and makes a good profit, but if you want to increase the quality and expand your business So you have to spend more money and your business will grow

 

[Ayokex]

Definitely it is. That is the more reason it is termed SME (small scale business) because it is small and the capacity is limited in many aspects. You can not compare a business that is worth $5million to a business of $5000 when it comes to profit making. If a big business buys 1 million quantity of products to make $2 profit on each and the smaller business buys 2000 quantity of the same product to make the same profit on each piece. We all know who will make the higher the profit.

 

[lelakil3]

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?

As it its first it can be just a smaller profit but it will be kept incrementing just from the start as to pay of the capital and all the expenses but even if you get a small business your money keep profiting it means progressing rather than spending and waiting in keeps decrementing.

 

[Psalmsavatar]

In my idea, small business means small profit but that doesn't mean one cannot grow their profit range. Once the owner of the business intends to plough back the little profits into the business, it is the droplets of water that will make an ocean, so the small business will finally translate into a big profit.

 

[iamgroot]

Small business, but does not mean small income, the more appropriate term there is small business, suitable income. Because big business can be said to have a small income depending on who runs it.

 

[Hdre3m3n]

A small business doesn't mean you'll earn small profit. The reason why it is regarded as a small business is because it requires just a little amount of capital to start. Your profit as a small business owner depends on your country and the industry in which it is operated.

 

[Folaham]

A smaller business does not mean a smaller profit infact a smaller business can generate a better profit margin when compared with a larger business. Some smaller business have higher return on investment that outclassed the "big businesses".
What really matter a business to be profitable is the gross profit from all active jobs which must be sufficient to cover all overhead expenses. A well thought of small business with right research and good planning can boost of higher return on investment when compared with bigger ones.
I have seen smaller business whose return is 50% profit margin. For example a small fish business where a cost per pack cost 1000 Nigerian naira and the selling price per pack is 1,500 per pack. That is 50% profit and there is no real extra cost incured other than the effort puts in by the biz owner

 

[ronaldlorenzo01]

It does not mean if you have smaller business it is small profit. Think of it just like in the streets food or stalls. They are earning much due to their business. It is like this the more transaction count the more profit. That is how it works.

 

[GIFTMICHAEL]

The size of our business determine the kind of profit we can make. If you start a mini business you shouldn't expect to make lion profit as somebody who is running a giant business. The smaller your business the smaller your profit.

 

[chicnthin]

It doesn't necessarily mean that way but having more money or capital in business would surely help in earning more profits. A small business could potentially grow if it is properly managed and there is high demand.

 

[Naina]

I thought that a small busniss means not a small profit. Because we start our busniss to think that we have no idea whenever we start our busniss in a small investment.

 

[Ebuka Stephen]

Yeah true the type of business one is into can determine your profit margin, for instance when you produce things in smaller quantities you can't be able to meet up with the demands of people, but in rare cases people make lots of money from small business even if their production rate is low due to the products they sell or make.

 

[BrolySSJ]

In my idea, small business means small profit but that doesn't mean one cannot grow their profit range. Once the owner of the business intends to plough back the little profits into the business, it is the droplets of water that will make an ocean, so the small business will finally translate into a big profit.

This is true, and you can make incremental business changes as your business becomes more established within the community as well. And that is what will at the end of the day grow your profit margin. I think that the main concern that I have with smaller businesses as the fact that it is very hard to try and find a good supplier that will be able to provide you with the goods that you are selling at a competitive rate. What is your opinion on how to work around this?

 

[Klashlly]

a smaller business mean smaller profits​

No matter that excessive price cutting quickly destroys profits. Also, the owner-manager's salary in a small business represents a much larger fraction of revenues than in a big company, often such a large fraction that little is left over to pay additional managers or to reward investors