4 ms·
The idea of a "profit eater" department makes no sense to me. Sure, your IT department or janitorial staff or whatever aren't being directly handed money by cli
by p1necone 7y ago
The idea of a "profit eater" department makes no sense to me. Sure, your IT department or janitorial staff or whatever aren't being directly handed money by clients, but your business would not be able to run without them. Surely they're only a negative profit center by a very myopic, naive definition of the term?
- chii 7y ago> your business would not be able to run without them. but can your business earn more if had more of them? If yes, then it's a profit center. If no, it's a "profit eater".
- p1necone 7y ago> but can your business earn more if had more of them? But that's true of everything. If you hire 100% more salespeople (generally considered a "profit center") but don't also hire a proportionate number of extra devs and IT and janitors you're not going to make more money either. Simplifying a bit, but there's "right amounts" of all types of employees - if you don't have "enough" devs/salespeople/support staff/IT/janitors, then hiring more will result in you making more money.