Does a smaller business mean smaller profits?

[Divulgence]

Let's first look at what makes a business small. I think the capital invested into a business determine the scale of a business. If little capital is invested definitely it will yield small returns and vice versa.
That evince that small business means small profits

 

[ranaabubakar263]

Small business owners need to change their practices to focus more on profit, according to Patricia Sigmon, founder and president of David Advisory Group, a firm that specializes in helping CEOs and small- to mid-sized businesses re-engineer their business practices.

 

[eenya001]

Definitely a smaller scale of business would ultimately signifies a smaller profit margin, that's how the business world operates you can't give what you don't have. When your business upgrades to a very larger size and in scale you could literally make more profit for yourself.

 

[Adetayo100]

Small business doesn't means small profits No matter that excessive price cutting quickly destroys profits. Also, the owner 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

 

[MRizwan530]

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?

Your property is dependent upon the number of customers especially if you are doing a small business if you have a product which is not accessible in all over your area of course the ratio of customer will be increased in your shop and you will gain a lot of profit even your business is small.

 

[Judee201]

Yes smaller business means smaller profit because the capital you invented to a business determine the profit you get.

It does not also lues there sometime there are small businesses which produce higher profit, the value the business is creating in a big factor to considered

 

[Lyrrex]

It depends on the management team behind the business, there are some large business that is being handled carelessly and still doesn't bring an amount of profit a smaller business would bring if managed by a very competent hand.

 

[Sarfraz Ali123]

There are several reasons why small businesses are likely to deliver better customer service than a large company. Being small means better customer knowledge. A small company is closer to its customers and requires fewer resources to learn what people want to meet their expectations.

 

[Janita]

I cannot say much more about this because I have seen that many people has converted their small business into big business because having small business makes your perfect and you easily manage the management and business so by doing this you earn much profit from small business and you convert it into the biggest business.small business can give you big profit if you have idea and knowledge how to work on..

 

[Eren Jaeger]

If you have a smaller business it doesn't really mean you'll take smaller profits. It just means that you have less workers to work with or less products to sell. Regarding the profit it varies depending on the business you have

 

[Adegbindin Abdullahi]

Small business doesn't really mean that you will get a small profit, the logic there is the level of investment in it. Bother small and big business depends on the investment input, both has profit in it but their level of profit defers. Most big business start from small and then expand

 

[Gilead]

Small business does not necessarily means small profits. Although most small business make small profit compared to big businesses but big business started from small business that is one thing we should take note.

 

[Blessedsam60]

But honestly to contradict some thoughts here. Small scall business can't be compared to a large scall business in terms of profit making unless something has gone wrong guys. The level of operation are quite different. Sometimes small businesses can be be referred to as "One-man business" but a large business need so many set of entrepreneurial skills and management in which more capital and others will be invested to get a huge profit as a return.

 

[Denuola]

Small scale business doesn't mean small profit. Although it depends on the competence of the owner of the business. He or her ability to think beyond the size of the business will determine the profit made.

 

[BrolySSJ]

Your property is dependent upon the number of customers especially if you are doing a small business if you have a product which is not accessible in all over your area of course the ratio of customer will be increased in your shop and you will gain a lot of profit even your business is small.

It is extremely important to have a product that is not easily accessible within your region because then you are creating a much higher demand for it, and also you will be the only supplier within that area that is able to meet the demand. This is great because in terms of price you can then increase the price of your products and people will still likely support you because there's no one else in the market that is competing with you.

 

[Ehtisham memon]

I think first should be start the smaller investment in the business when see our Bussiness is profitable then should invest more the small investment then big investment Bussiness start investing slow then investment increase as well small investment small profit from the business when big investment in the business big profit in the business

 

[Ibrahim1]

As for me I dont think so and will never agree with that because what matters now is that a small business can also earn you big profit and moreover it depends on the kind of small business we talking about because from the pandemic the small business took over the market till now

 

[MarieArie]

No, small business doesn't mean smaller profit. it's is how you maximize your business that you will get enough profit. Many people don't know this hence they limit themselves to the Available options they have. Go beyond what your business say and make more.

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?, smalll

 

[Peppul]

Having a smaller business does not necessarily means that your profit will be little. Most times, what actually determines a small business, is it the space where the business is situated or the production of goods or the capital invested in the business. Most times some business can be deceiving, you might start small but along the line the demands you get might be high and thus increases your returns. Take for instance am into importation of good(phones) and I have the capital to buy like 50 phones and the demand am getting from customers is 500, then I bargained with the client I work with that he should give out the phones to me since the demand is high and I will forward the payment to him, he agreed with me offering little percentage, and the deal was done all 500 phones sold, though my business capacity was small I was able to make huge returns. So a smaller business doesn't necessarily means smaller profits.

 

[sam386150]

Yes smaller business comes with smaller profit you cannot end big when your business is small the only thing is for you to manage it well put God first always protect your business and you also need to maintain it successfully