Does a smaller business mean smaller profits?

[Ogbest]

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 a start I will say yes, profit comes base on the size of the business for a start. But that doesn't means, the business will for ever remain small, if you pit more effort in the business, you may start making profits even more than those who run big and large business.

 

[jimmann247]

Smaller business mostly brings small profit, yes because you can't have capital in a business and make very huge profits, your profits margin will move according to your investment or capital.

 

[Georgeadawara1]

Sometimes people seems smaller business attract little profit.yes but it depends on how you run the business, nd how much capital you put in the business.
Some small business people think is there as small but profit has a large profit in it

 

[Genius]

Whether a little or large, your plan for the business is important. One thing about business is striving to do better everyday. You don't want to remain stagnant. You see competitors who are restless and resilient to go higher. You cannot choose to remain stagnant. It's the plan and vision you've for a business that matters, not the capital at the start.
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Whether a little or large, your plan for the business is important. One thing about business is striving to do better everyday. You don't want to remain stagnant. You see competitors who are restless and resilient to go higher. You cannot choose to remain stagnant. It's the plan and vision you've for a business that matters, not the capital at the start.

 

[Philip Omotayo]

Small business does not really mean small profit. Essential services like alcohol etc gives a huge among of money as return. Its dépend on the nature of the business. So à small business could give a big return.

 

[Chumzy]

No matter how you try to coat it to mean differently it is still smaller profit. But then the idea is not to stay small but to grow into something big. Then the big profit will come because you already know the ropes.

 

[bhennie]

Having a small business doesn’t necessary mean small profits, it depends on your customer base that would determine. A small business that render an effective service to its customers or that serve the needs of the customer would make lots of profits.

 

[tuna89]

At the start of a small business, you should not expect large profits, you would definitely get smaller profits within a small organization but as time goes on and as you continue to pump more money and expand, the profits would definitely increase as far as you have put in place all correct management techniques and planning and you are following strictly the business plan.

 

[Waseem74]

Small businesses are privately owned corporations, partnerships, or sole proprietorships that have fewer employees and/or less annual revenue than a regular- sized business or ... The definition can vary by ...

 

[oluwaseun tope]

A small business does not really means a small profit it on the kind of business there are some small business that has a lot of profit and it depends on how you handle such business , the way you spend your profit if you are type that have savings you will make it.

 

[zahidhussain]

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.

no it does mean that a small business give u small profitst there are so many buisness that will give u large number of profits if u run a small cotton factory you should earn large amount of profits similarly if u run a small shop and give full time to shop you get a large amount of money so it is depends on you what should you start and what is your plan about it

 

[Ridwan Mohammed]

Urdu
English









Absolutely you have written brilliantly. Whenever we start a small business, the first benefit we get from it is that we have to invest less in it. 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. We should start with small business in the business world.

Of course... The more you invest in a business, the higher your chances of profits. It's just the bitter truth.

 

[Ausaf Ali]

yes smallest business are is most factor of low income and short profit business ybusiness the opportunity to change the market and make the market more enjoyed and your personal information about your future will send your company has been working for you for years now.

 

[Oliver 20]

Small scale business have set up to serve the requesting swarm. Notwithstanding, only one out of every odd one of these is fruitful and acquire high benefits. There are numerous organizations which are efficient, clear about their central goal, vision, and targets, and understand what they have to bring to the table the crowd. Having this comprehension of the motivation behind a business is the greatest accomplishment towards more noteworthy ROI.
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Small scale business have set up to serve the requesting swarm. Notwithstanding, only one out of every odd one of these is fruitful and acquire high benefits. There are numerous organizations which are efficient, clear about their central goal, vision, and targets, and understand what they have to bring to the table the crowd. Having this comprehension of the motivation behind a business is the greatest accomplishment towards more noteworthy ROI.

 

[Papikarl]

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 write up is nice and yes, when there is small business it brings small profit by when the business is big, it brings I bigger profits as well. So as the business is growing so also the profits are growing

 

[Mostee501]

Once a small business is generating appropriate profits,it can aid the business to grow bigger until it becomes a big business. Starting small is no crime,it makes you gain more and more experience and helps you manage the big ones,when the come.

 

[Presh1503]

I can't actually say that small business generates small profit but in some situations it does,for instance the situation you gave small business in this situation generates small profit but the r are some situations where your small business even generates profit more than some large business or full time jobs

 

[Kelly5]

I'd a smaller business means smaller profits? I will rather put it this way. A smaller business means a smaller capital that started the business. You must start somewhere in business and grow it up to the level we want to reach but with time

 

[Joseph555]

Small business with actually bring forth small income except you are planning to merge capital with the profit
There is no way a small amount of money will provide big profit that is not possible as far as we are not talking about betting here,if a small business bring big income that will take donkey years to happen.

 

[KvngMurphy]

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.

I sincerely appreciate your reply. A smaller business does not necessarily mean smaller profits but most times people mistake it as such. The main disadvantages of smaller businesses is the fact that they need to do more publicity to gain awareness