“Too much of a good thing is a bad thing. Does that apply to business profit?”
Yes. Let me explain why.
Obeying the laws of survival, businesses can only survive with the adequate and proper management of resources. And for the longest time, I have always thought that money equals to resources, that it became the priority to the business.
Well, I couldn’t have been more wrong. Here are some ways profits can kill a small business.
I get it, getting paid is a good feeling. But don’t forget that above all, you’re selling value with your products. It’s not wrong to charge accordingly. The key is that the sale is worth the money and value.
As your business grows, the capacity required to keep track of your cash flow increases. Make sure you’re getting the proper help in managing your financials. Automate your accounts to always have a proper bookkeeping system for your business. If you’re a growing micro SME, try our accounting automation software for accounting novices at financio.co
Proper time planning
Some start-up owners fail to see how expansion is a long-term commitment. Don’t be too quick to jump onto the expansion phase of your business. Re-evaluate to see if you have enough resources, experience and reasons to expand before taking another step forward.
All in all, the profit itself might not be the destruction point but the inability to manage such prowess can be the downfall of a small business. Hope this helps in managing your resources so that you can make better business decisions.