Profit

In accounting 101 we learn that profit is the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the cost associated.  While textbooks are fun for accountants, let me share my understanding of profit.  A super-mentor of mine shared this with me a few years back, and it has radically shaped my view on business:

“Profit comes from risk.”

That’s it…..now let it sink in.

The day you decided to open your business you took a risk.  Decisions to hire, expand, fire, vendor commitments, all involve business risk.  The bigger the risk, the bigger the potential reward; profit.

Profit is the result of the risk we take.  If the reward is great, as it should be, rejoyce, you deserve it.

 

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