When you hit profit, what you should do: Business mindset
This is a great aspect of business that needs to be taken very seriously. Many sees the profit as that aspect that nourishes their stress. Immediately the profit comes, all we keep calculating is how to lavish it. We have forgotten how we were saying it will be used to invest back into the business or help strengthen the business more strongly. The sweet melodious promises is now swept under the rug. We forgot about it immediately the gain start coming or we lost count of how to control wealth.
I was just checking on stuff when this great topic hits my mind. Immediately I flashed to this topic, I remember about some business men I came across in the year 2017-2010 who told me some little secret about business and how profit should be maximised. I was opportuned to meet with 6 persons and all of them shared light on how profit should be spend or use in a way to boost business. Before I digress on that I want to use this medium to talk about what is profit and if possible, how to maximise it.
What is profit?
Profit, also called net income, is the amount of earnings that exceed expenses for the period. In other words, it’s the amount of income left over after all the necessary and matched expenses are subtracted for the period. Notice I didn’t say all the expenses that were paid during the period.
From the above definition, it is fully seen or understood that profit comes after cost and expenses have been subtracted from the services you rendered in a given time frame.
How to calculate for profit
As far as profit is concerned, you don't need big formula to get it calculated. If you want to calculate for profit once you bought an item, you should first of all calculate the amount you use in buying the item and subtract it from the amount you sold that items. Take for instant, I bought a shirt for $10.00. The next thing I should do here is to add my transportation and miscellaneous cost to it. After doing this if I arrive at $12.00 following all cost, the next thing I should do here is to make sure I now add my own interest to it. Adding $1-3 to it to make it $15 is not bad at all.
Now after adding it and it total $15, it now means that if I sold that item for $15, removing the total $12.00 from transportation and miscellaneous, I have now gained $3.00. From the above logic, you can simply see that it is very easy to calculate profit.
How to Maximize your profit
Back to the above topic, I was opportuned to talk to some great business men and they air their views when it comes to maximising profit. When it comes to business, maintaining this principle is the hardest thing to ever think of. It is one factor I considered easier said than done. My encounter with Mr Jide.
My encounter with Mr Jide
While sourcing for more knowledge on how to maximise profit, I came across Mr Jide, a potential business man who deals on wears. He had his clothing line which he told me he has been single handedly managing for about 6 years now. Now I asked him the big question on how he has managed to maximise profit. He went straight to the point by saying he has seperate account for the business he is running. After selling the product, he will go ahead by seperating the capital from the gain. The gain will be documented in his record/chart. After doing that, he will now send the money to the account he opened for the profit. With this, he is able to keep track of business profit he made.
My Encounter with Miss Zenith
She is a lady into clothing line too. She is doing very fine in her field so I decided to ask her how she is coping with profit maximizing. She also went ahead by letting me know that all she does is to keep record of how much she bought the items and how much she sold it in her record book. After doing this, she just went ahead to removing the cost of the item and reinvesting the profit back into the business. With this kind of tactics, her business keeps flourishing.
From the above, we can clearly see that their both tactics is cool in as much that the business is doing fine. On my own, permit me to enlighten you on what to do when your business hits profit. They are as follows;
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When your business hits profit, you should first of put your pen and paper to use by recycling the profit into the business. By so doing, your business will keep moving in an uptrend circle.
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The second thing to note when your business hits profit is to make sure that the money is being saved in a seperate account which is kept strictly for the business growth. Your business might not need an urgent help right now, but if you keep saving the profit for future crises, it will help to take care of your business when the time arises. This will not see you running around begging for support if your business hits the bottom.
Conclusion
The essence of putting your profit to a better use is to ensure that when need arises, you will be able to cater for it without seeking help outside. We know profit is meant to be eaten, but put a larger part of it to use so that it can regenerate more and more profit for you.
We know profit is meant to be eaten, but put a larger part of it to use so that it can regenerate more and more profit for you.
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