Service first then profit should be the objective of every business. Justify the statement with example
Answers
Main aim of an organization is to provide services. But it is not the only aim of business, earning profit is also the objective of every business to survive in the market and to expand their business.
Setting goals and objectives is vital for any entrepreneur overseeing a new, growing company. Business owners set different types of objectives, including financial objectives, to give them a solid plan for moving in the direction of long-term success. Common financial business objectives include increasing revenue, increasing profit margins, retrenching in times of hardship and earning a return on investment. Increasing revenue is the most basic and fundamental financial objective of any business. Revenue growth comes from an emphasis on sales and marketing activities, and is solely concerned with increasing top-line earnings – earnings before expenses. Companies often set revenue goals in terms of percentage increases rather than aiming for specific dollar amounts. An entrepreneur may set an objective of increasing revenue by 20 percent each year for the first five years of a new company's operations, for example.
Profit Margins and Bottom-Line Earnings
Profit objectives are a bit more sophisticated than revenue growth goals. Any money left over from sales revenue after all expenses have been paid is considered profit. Profit, or bottom-line earnings, can be used in a number of ways, including investing it back into the business for expansion and distributing it among employees in a profit-sharing arrangement.