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I think the point is that the stated mission is window dressing on top of the underlying truth. Following POSIWID, all for profit enterprises have making money
by reverius42 3y ago
I think the point is that the stated mission is window dressing on top of the underlying truth. Following POSIWID, all for profit enterprises have making money as their core mission.
- bruce511 3y agoI'll caveat your comment with "existing". 90% of businesses will fail inside 5 years and always got the same reason, because they run out of cash. Unless you are an outlier, and manage to balance revenue with expenses every month [1], you will need to average positive cash flow or you'll run out of cash. [1] of course if you are small, and tolerate fluctuating pay, then you can balance the books by not taking a salary but taking out all excess revenue each month.
- bandrami 3y agoExcept that doesn't really work, because plenty of businesses start in low-margin industries, but if profit is actually the first motivation then every business would be a hedge fund. Ray Kroc wanted to get rich making burgers, not just get rich.
- reverius42 3y agoMaking burgers is the activity; getting rich is still the first motivation. Besides, I'm not sure Ray Kroc is the best example, and I doubt he personally made a lot of burgers; he bought the national franchise rights to the McDonald's restaurant chain after it was well established, and set about getting rich by making a more efficient burger-restaurant process.