Does a smaller business mean smaller profits?

[Hasan Raza]

I am a little bit disagree with your points.It depends on the type of business and the hands handling it, there are some large business that is being handled with careless hands yet still doesn't bring an amount of profit a smaller business would bring if managed by a very competent hand. There are many examples of small business persons earned good fame.

 

[Defaith]

business is all about the way you build it, when you build a small business you will be actually be getting small gain. but there are some business that they will be small main looking at them but the profits coming in are they are good profit the way you build your business is the way you're going to get your profit and what really matter in business is profit.

 

[BrolySSJ]

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.

I think that it is very rare to be able to find someone that will be willing to provide you with phones first before you make the payment. However it is good that you were able to do that because you created a direct link between the customer and the client that you were purchasing the items from and having yourself as an intermediary there has enhanced your business proposition as well. I think it is a good idea to do it in that way because even a smaller business can then generate profits if they have excessive demands and it is beyond what they can account for at that time.

 

[Smithkid]

It depends on the type of business and the hands handling it, there are some large business that is being handled with careless hands yet still doesn't bring an amount of profit a smaller business would bring if managed by a very competent hand. So we have to take care of any business we want to do

 

[Ltherman]

Small business in evitably brings small profits in terms of returns i guess in starting a business for a first time one can decide to do it small in order to minimise the risk involved over time. All the same its good to take everything into consideration.

 

[Nurudeen]

Yes very well the total amount of money or profit you will get from a business will depend solely on the amount of money u invested in the business. Also if you can just start small you will expand later with the little capital and profit you have made so that your profit will be much more higher in the longer run

 

[Kaindio Agnes Wanja]

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?

According to my opinion i don't agree that a small business means small profit margin .
We find that even if the business is small,the owner is getting good profit that worth his or her business .
So as the business grows,the more i one is earning more profits from it and we cant say that the profit is less because it is worth the size of the business .

 

[Mary]

Small businesses require just little capital and that's why I think it is believed to have little income. There are so many small businesses that grown to become a large scale business. This is because of the profits maximization.
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Small businesses require just little capital and that's why I think it is believed to have little income. There are so many small businesses that grown to become a large scale business. This is because of the profits maximization.

 

[mcjerry]

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.

Most businesses start from small and became big. In a small business, the business man should not except big returns. The returns will also be small.
For example a person that has a business in just a place will earn lesser than a business in many places. So the bigger the business the bigger the profit

 

[Mikomataracy]

Small business does not mean that the profit one will make will also be small but depend on the product or goods that you are selling.
No matter how small the business is so far the inflow(revenue) is constant I.e flowing very well the profit will be great.

 

[Kiwi]

Smaller business doesn't necessarily mean smaller profit. It depends on the type of business and the hands handling it, there are some large business that is being handled with careless hands yet still doesn't bring an amount of profit a smaller business would bring if managed by a very competent hand.

 

[Mujahid12]

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?

It is not necessary that you can earn a little profit from small business. You can also earn big profit from small business. If you have good planning and skills and experience, then you can also earn a lot of profit from small business.

 

[BrolySSJ]

It is not necessary that you can earn a little profit from small business. You can also earn big profit from small business. If you have good planning and skills and experience, then you can also earn a lot of profit from small business.

Excellent point. The skills that you have in running a business plays a huge role in how profitable your business is there are many businesses that are at large that turn off with more profits every year and as you said small business can still yield a large profit depending on how it is managed. So it seems that management is way more important than the size of the business that is involved.

 

[Azam786]

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 agree with you But in my opinion, any work should start small If you start a time of small level pay 2 3 So this way you can make more profit now There is a green market in my setting where people buy vegetables for about five dollars and sell them for 20 dollars Every country has a different account but my country also has a different account

 

[Chibson]

The answer is simply yes. The size of every business data means the kind of profit it will make.
Smaller businesses can transform to big businesses over time depending on how the business is being run and the tactics employed in the running of the business. Big businesses like Amazon of course makes larger profit that smaller businesses.

 

[Diamond07]

Smaller businesses do not mean smaller profits. If you're dedicated and consistent, your profit keeps coming in. Often times, it's okay to start larger, that way the profit you will make will be higher.

 

[Axad. Mrb]

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?

Incomes vary because of factors like industry, geographic location, and experience. Being a small business owner is no different. There is no way to predict your personal income because there is no standard small business owner wage.

 

[Seyesystem]

No small business doesn't mean the size of the profit there are some business that that are very small which they generate huge profit while there are also big business that there profit is very small compare with the size of the business. Size of the business doesn't determine the profit it will generate but what they offer matters. If a business is offering a very good and hot demanding products it profit will always be huge.

 

[Milz]

I can say the size of business may determine the size of profits you will get because the more you capable to produce much product it determine how much profit you make. But as for me I can not make a profit trick me, I will like to start from small business then into a bigger one

 

[Damismiling]

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.

You are right, the business size determines the number of manpower and the manpower determines the business productivity which will in turn determine the profit of a business, a small size business can't get profit like a big size businesses