PROFIT MASTERS
One of the greatest challenges of new enterprises is the guilt of profit. You must be comfortable with the idea of profit in order to attract profit. For every good services render, there should be a corresponding profit traceable. This might be very difficult to internalize but except it is accepted, you might never resolve your profit challenge. There must be rationality between the quality of your product and the quality of your profit. Every quality service demands quality profits. The longevity of any product should be justified by its profitability except you are running an NGO. Don’t be unwise, if after a lot of innovation and manipulation on a product and it’s not profitable, cut it down and replace it with a more worthy product. Emotional attachment to a product that does not guarantee profitability leads to liquidity. Below are the reasons why I think you should consider profits for your products.
REASON WHY YOU NEED PROFIT
• New Product Development: It takes finance to develop new product. Research and development of new products require a lot of finances for quality delivery. It is often advised that quality time, energy and resources be invested product development. This will enable the producer to determine the profit margin. In the case where the product is less excellent, the market dynamics and consumer behavior could have a say in the percentage profit.
• Privilege of Expansion: Profits also give you the privilege of expansion. Every large scale company today started as a small scale business yesterday. Most of these companies grew because; profits generated were well managed and strategically invested back into the business for expansion. Small Medium Enterprises (SMEs) must be comfortable with profit to enable them expand. This is not to say they must be profit engrossed without focusing on the quality of their product, what I emphasize is that, for every quality product released there should be a corresponding quality profit except you are running a charity organization.
• Acquisition of Talents: It takes profit to hire and bring in talented employee into what you are doing. The finances at your disposal will determine the level and quality of the talented employee you can bring into your team. It takes profit to bring them on; it takes profit to maintain them also.
• Running Cost: It takes profit to run an existing business. For your products to remain competitive, it takes profits to maintain and project it among the classes. There are businesses up there among the “classes” and there are businesses down there among the “masses”. What determines your position is the level of profits at your disposal for your product projection. Businesses among the classes invest a lot of finances for them to remain relevant and competitive. Profit gives a product a competitive edge.
• Infrastructural Development: It takes profits to bring in infrastructure. Every business environment must be conditioned to attract customers. Infrastructures are needed, comfortable enough for business interaction. A writer once said when I see your office infrastructures, I can tell your financial structures. How funny that may be, I think he has a point.
• Product Continuity: Profit determines whether a product will last or not. There is no need being emotional with a product or an idea that is not generating profit. A lot of SMEs are emotionally attached to a product due to how fantastic they think the idea is. Sincerely speaking what determine the longevity of a product should be its profitability. If it is profitable let it remain on the shelf, if not cut it down and let another product takes its place. Profit therefore guarantees product continuity.
Conclusively, adequate intellectual investment and resources should be put in product development in order for the producer to be able to determine its profits.