Does a smaller business mean smaller profits?

[Goodday]

No, if the business is small doesn't mean the profit from it will always be small. Most businesses started as small scale businesses but as time goes on they expanded into large scale businesses mainly because they were able to make profits and reinvested such profits made.

 

[Alogakho Esson]

Smaller business never mean smaller profit rather is a step in a right direction which implies that as you starting point help one to study weda they business will bring good profit, you just wanna start from the bottom is just like growing animals you will buy few and gain experience first

 

[Ojueromi]

standard assumption amongst managers has been that small corporations use in fact the equal management standards as huge businesses, solely on a smaller scale. Underlying that assumption has been the idea that small organizations are a great deal like huge companies, except that small businesses have lower sales, smaller assets, and fewer employees

 

[Succjay]

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?

For fear of taking risks most people prefer starting a small business and retaining customers before pumping into the business to avoid loss. They groom the business from smaller to highest and by then they might have gained enough skill.

 

[Famok]

regardless of that immoderate fee cutting quick destroys profits. also, the proprietor-manager's income in a small business represents a miles larger fraction of revenues than in a large employer, frequently this type of huge fraction that little is left over to pay extra managers or to reward investors.

 

[redpogi16]

Ofcourse no it does not mean that you have small business that you have also a small profit. Even if your business is big it does not also mean that you have a high profit. It always natter how you serve customer even your business is small you can have a high profit.

 

[Sotherefore]

That is what I've been thinking and I think that is actually the truth because a small business may not be able to offer the same services that a big business is offering and therefore the profit in a big company will depend on how much services they can offer or how much product they can produce in a day.
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That is what I've been thinking and I think that is actually the truth because a small business may not be able to offer the same services that a big business is offering and therefore the profit in a big company will depend on how much services they can offer or how much product they can produce in a day.
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That is what I've been thinking and I think that is actually the truth because a small business may not be able to offer the same services that a big business is offering and therefore the profit in a big company will depend on how much services they can offer or how much product they can produce in a day.

 

[Sake]

No. Smaller business doesn't necessarily mean smaller profit. It will be down to how important the business is to the target audience. If the business moves very quickly in sales, you can expect the profit to be bigger.

Agreed, small business doesn't mean small profits. Let's say thw profit is just the right proportion for what you spend to establish the business, there are small businesses that generates 3x or even 10x of their capital daily. While some bug business are failing to even make ends meet. And goes bankrupt to fast

 

[BrolySSJ]

For fear of taking risks most people prefer starting a small business and retaining customers before pumping into the business to avoid loss. They groom the business from smaller to highest and by then they might have gained enough skill.

This is rue. The risk that is associated with any new business venture is proportional to the size of the business, because the size is generally a direct comparison to the capital that you may have invested into the business. Many do tend to start on a small scale and based on the reception that they get from the community and their customers they may look to either expand or perhaps even open up different branches of their business in other areas as well.

 

[Kehinde]

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.

 

[Haiqa umair]

A traditional assumption among managers has been that small businesses should use essentially the same management principles as big businesses, only on a smaller scale. Underlying that assumption has been the notion that small companies are much like big companies, except that small businesses have lower sales, smaller assets, and fewer employees.

 

[Kiko]

Many small business owners go through difficult times in the early stages when they wonder if their small business will ever see profits. The ultimate goal of any small business owner when you start up your business is for that business to take off and become profitable to the point you know your business will be sustainable for the long term. If your small business is now turning a profit congratulations. That’s a terrific milestone for your company and your hard work is finally paying off! Use Business Profits to Grow Your Business. Before using profits to undertake business growth or expansion, it’s important to run all the numbers and check with your advisors. At this point, it would be useful to revisit your business plan.

 

[Milz]

No. Only when compared to a bigger business in your niche. A business might appear bigger in appearance until you go through their books and you will realise that they make very little profit.

 

[Prettyjanie]

Small business does not necessarily amount to having small profit. It all depends on the type of business you are into. Some businesses are best managed when it's not to big that of course does not mean you do not want your business to grow. Turn over is key in business.

 

[Profuk57]

That a business look small it does not means that the business will produce small profit in all cases. like in my country Nigeria and some businesses that look very small to the physical but they do produce very large turn over or profit an example is the periwinkle business.

 

[Ayokex]

There is not doubt about this that small business means small profits. You can not compare the revenue of someone who started a business with 500 million Naira with the revenue of someone who started a business with 500 thousands Naira. Even if the former is making higher return on investment and the first one is making lower, the first will still record the higher profits.

 

[Ziki]

And if you want to make sure your link it's out there to start getting people to your business. Now, many marketers still use this and it's a very effective way of bringing people to your business. Lots of this is obvious. But I want to kind of tell the put this out there to help you understand this.

 

[Aminat]

a small business can later be expanded into a big one if a business has many customer.if you have a small business and you sell good product you are going to have many customers which will lead to more profits.

 

[Robrown83]

The smaller the business the smaller the profit that is no two about that because it is what you buy that you are going to sell. For instance, someone that buy 10 bags of cement can never make the profit of someone that buy 50 bags.

 

[Doradorwa]

In as much that smaller business means smaller profit sometimes it can also means big profits sometimes... Look at nose mask business during this pandemic... It's a small scale business mostly but people got tons out of it last year....