By Ed McLaughlin and Wyn Lydecker
Is profit evil? We raise this question to frame the debate: What is the reward for taking the risk to start and build a business? As I see it, if you develop a value-added idea and start a business by putting capital, reputation, and sweat equity at risk, you have earned the right to make a profit – because profit is the fuel that underwrites a sustainable business. Yet, some people are concerned about the concept of profit because they believe it comes at the detriment to others.
To Profit or Not to Profit…
In fact, a few people have contacted us, taking issue with our focus on profit. The dissenters have expressed a belief that putting profit first means the entrepreneur wants to increase personal wealth at all costs. Yet, most of the entrepreneurs and business owners that I know understand that they cannot build a sustainable business if they make a profit at the disadvantage of others. Still, the comments have made us question the title of our upcoming book, “The Purpose Is Profit: The Truth about Starting and Building Your Own Business.”
After consideration, we’ve come back to our belief that the core purpose of every business is to make a profit. If you are starting out to launch and build a business, you want to achieve success. Otherwise, what is the point? Success is measured not just by revenue, a fast-growing customer base, and social good – but also profit.
Profit is the fuel for growth, sustainability, and social impact. Profit enables a business to achieve all of the following 5 goals:
- Pay bills and save some money for a rainy day
- Underwrite the cost of sustainable job creation
- Fund business growth and expansion
- Enable social responsibility and giving back
- Fuel the fulfillment of the entrepreneur’s vision
We’ve summarized our beliefs in this brief video. It lasts less than a minute. We’d like to know what you think after viewing it.
Our question is this: Can you build a successful, sustainable business without making a profit?
Please share your views in the comments, send us a message, or email us at:Ed@ThePurposeIsProfit.com.