Monday, February 25, 2008

Positively Profit

America seems to have lost its focus on the most critical element of business - profits - companies now seem to manage for and use ever metric possible but profit.... Turnover, productivity, employee satisfaction, every other buzz word, trend and "business phenomenon" has driven the American business owner from his core purpose. The business of making money.

Alot of this advice about avoiding profit comes from one place in particular, your Accountant who is now in essence works for the IRS (which you may not have realized) and is fined and penalized every time they try to find a creative way for helping minimize your tax burden. Therefore the less you have the easier his job and the lower his risk and the higher his profit margin.

Profit should not be the mistake that drops out the bottom of your P&L, an accounting aberration at the end of the year, it needs to be planned, predetermined, the first line of expense for a company and not the last!!!! When you set up your budget or forecasts for the year, ensuring a healthy profit should be the first thing you do, the remainder of the year should then be spent protecting and defending that number by minimizing expenses.

Copyright Jonathan Rose 2007 - Creative Commons License

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