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People invest in big or small businesses for a myriad of reasons such as attaining independence where one becomes his/her own boss. Others enjoy the flexibility to work when and where you want while others get to work at something they enjoy and thus utilize their talents to the maximum. You will realize that you might actually achieve financial freedom by running your own small business than by working for someone else. As a matter of fact, many engage in business mainly for the financial rewards (profit). Profit is not an absolute concept, but is what an individual defines it as. Accountants, business people and economists disagree on suitable definitive solution to the problem of defining and measuring profit. Nevertheless, profit is income and it is unlimited, as in the case of monopolies. For a company to realize a profit, it is necessary to make a sale. While it is often thought that the business objective is to maximize profit, in reality the prime business objective is often survival. Income maximization has been noted as a false objective in many cases. The maximization of income may lead to retention of obsolete equipment, employment of low grade personnel at low pay, purchases of cheap inputs, cut-backs in research and equipment and the like. Due to a policy of low investment in business aspects like marketing, hiring and mechanization, income may be drastically increased in the short run, but in the longer term, the company will be over taken by its competitors and lose its markets share. Organizations should not have its objectives as maximizing profits only but also take into consideration ways of producing quality products and services and also meet its operating costs. This will ensure its survival and expansion both in the current period and in the future. Stephen is an Business Organizing Expert . He researches and studies on big and small business strategies . Website:- Business Management Solutions for efficient business operations.
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business growth, business, small business, maximizing profits, business aspects, measuring profits, financial rewards, markets share, quality products,
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