Does a smaller business mean smaller profits?

[jay]

Profit you gain from a business whether small or big is dependent on the size of the business. You can't start a business with for instance $100 and expect to have more profit than someone who started the same business with $1000. So the size of a business determines the profit.

 

[Ralphjoe]

What you said is actually the truth because small businesses always attracts small profits why big businesses always attracts big profits. This is only true for all kind of business that is why all business is always aspiring to grow big because in growing big then it profit also grows bigger.

 

[Jomarie05]

Whenever we have to start a small business and we know it. Coins and we can make more profit and later we can go to big business and we can make more profit.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.

 

[Abbas ali]

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.

 

[Nicklas22]

Yes, the size of a business determines the amount of profit that will be generated
Who man who owns a real estate business will have a higher profit than a man who owns a barbing saloon
The bigger your business, the higher amount of profit and the the bigger your business the more stable your income flow

 

[Ali raza]

No business is small. It depends on you how much time you are giving to your business and how much work you are doing.If you know business well, you can make a lot of money from small business And if you are inexperienced and your management is not good then you can't make more profit than big business. So when you start a small business, deal with it in the best way possible so that you can start it on a large scale

 

[marky]

sort of private venture and the business recurrence, what I mean by purpose recurrence is that on the off chance that you have little or few item and it sells quicker as envision, your independent company may wind up giving you large cash toward the month's end, in light of the fact that inside a month, you will have ip yo 10 turn over making you huge benefit.

 

[Steveade]

Small business doent mean small income.reason being that nost snall businesses relocated in areas dey re mostly nt too needed bt i tell u situate it in an area where theres a great need for it, ur income wil shock u

 

[Ojonuyo]

I will start by saying garbage in equals garbage out. That's just the simple mathematics involved in business. You can not put in small capital or run a small scale business and expert your business to generate income worth millions of dollars, that's impossible. So if you want big profit invest big.

 

[Fabby]

For a job to be considered profitable, it must generate enough gross profit. To break it down, the revenue you receive from the job should be sufficient to cover the job expenses.

For a business to be profitable, the gross profit from all active jobs must be sufficient to cover your overhead expenses.

 

[Zevin]

The paid-up capital, assets, yearly turnover, workforce, etc. determine the size of the company. Generally speaking, a small company generates small revenue. If a company generates a lot of money, it is no longer a small company even though it might have less than 10 employees and have a small paid-up capital.

 

[BrolySSJ]

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.

I believe that predicting your income is actually one of the most important things that you have to do when you are thinking about making a business in the first place. Generally what happens is that you conduct research into the business idea that you have and from this research you can make projections about how you think your income would be.

 

[Felixko]

No small business does not mean you will earn small profit it depends on the manager. If the manager is having more knowledge about the business settled or able to manage the expenses the business is lucky to earn huge profit. In this, most big companies run lost due to what they they think they know.

 

[Dowenship]

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?

Hmm..... what of the lost or rottenness of the stock stored up, some are not sold immediately they are gotten and I think that's why its gotten in discount. Either of the two as it advantage and disadvantages
but your capital matters to that effect

 

[Ryeetar]

Logically the more you input the more you output, but most times it doesn't work that way there are few businesses that u don't have to invest a huge amount of money on before you start making good profit. Selling of phone accessories is one of the business with huge profit that I know of, and you don't need to invest a huge amount

 

[BrolySSJ]

Hmm..... what of the lost or rottenness of the stock stored up, some are not sold immediately they are gotten and I think that's why its gotten in discount. Either of the two as it advantage and disadvantages
but your capital matters to that effect

Generally when a company does have stock that is not used up, and it may be damaged, or it may be nearing its expiry date it is sold at a massive discount. And this is good because it gives the customers more to come in and buy from the store and is a good promotional tool as well. When someone comes to buy one of these items then chances are that they will buy something else as well and this will help you greatly in making up for the loss on that item with the profit of another.

 

[Senator]

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 all depends on what one mean by small, what is small to one might not be small to the other. However small business those not really translate to small profit. What is important is the qualities of services rendered if quality is good and its maintained it can generation good profit.

 

[Onachukwu]

However, if taking that risk does pay off, then less start up costs, low overhead, quick turnaround times and fewer employees mean you can turn a profit quicker than in a larger corporation.
Sure, you may not be making as many millions in profit as a bigger biz, but the money you are making is divided among fewer expenses and salaries, meaning you get a greater portion of the cut.

 

[Jimmie150]

A small business does not in any way mean small profit. For the fact that something is small does not mean one should look down on it . I believe change is the only constant thing in life and it can happen even in a very small business.

 

[Folaham]

Smaller business doesn't mean smaller profit.
Infact most smaller business profit return are above 50% of the cost price and at times the profit margins is so high that someone with huge capital or with new marketing plan can tap into and flip price for his gain