3 ms·

There is more to running a good business than being profitable.

by kube-system 3y ago

Repulsion9513 3y ago
The executives and shareholders of every large business would like to disagree.
- deleted 3y ago
  [deleted]
- kube-system 3y ago
  I'd argue that many of them aren't good businesses, even if they're profitable. The opinions of shareholders are just opinions. We all have one.
  - Repulsion9513 3y ago
    You're free to make that argument, and the stock market and capital will make a different one. Using that capital, the businesses competing against you will make sure that your good business is no longer a business. At which point it will indisputably be a bad business, failing to do anything for anyone.
forgetfreeman 3y ago
Private equity's track record of profitably cratering popular franchises would also like a word.
saulpw 3y ago
Not since Milton Friedman won the Nobel Prize in Economics in 1976.
henry2023 3y ago
I agree with you, running a business used to be about providing products and services to fill your customer’s needs. Go to any place whose owner is also working there and you still feel that vibe. The satisfaction of a restaurant owner hearing that you enjoyed your meal or the proud gym owner who starts a conversation with every new face which happens to start attending for more than a few days and just wants to help. Sadly these businesses are outliners now. Nowadays MBAs are hired as CEOs and then Boeing happens in nursing homes. They are in fact bad businesses but no one seems to care. Returning to the article. The home owner didn’t care a little bit about having principles or trying to run a business that provides value to society. The argument was purely profit based. If there was a way to pre-file for eviction that was legal and costed 900 usd. They would have taken that instead of giving the 1k
- bombcar 3y ago
  Landlording of single-family homes especially is much more akin to capital investment than small business. A landlord who lives in one unit of a 40 unit apartment building that he owns is closer to the small business, especially if he provides the maintenance. The nice thing about the small business is that the profit is practically capped - once the owner has "everything he could want" he will basically stop trying to get more. But shareholder corporations never hit that point.

There is more to running a good business than being profitable.

Repulsion9513 3y ago

The executives and shareholders of every large business would like to disagree.

deleted 3y ago
[deleted]
kube-system 3y ago
I'd argue that many of them aren't good businesses, even if they're profitable. The opinions of shareholders are just opinions. We all have one.
- Repulsion9513 3y ago
  You're free to make that argument, and the stock market and capital will make a different one. Using that capital, the businesses competing against you will make sure that your good business is no longer a business. At which point it will indisputably be a bad business, failing to do anything for anyone.

forgetfreeman 3y ago

Private equity's track record of profitably cratering popular franchises would also like a word.

saulpw 3y ago

Not since Milton Friedman won the Nobel Prize in Economics in 1976.

henry2023 3y ago

I agree with you, running a business used to be about providing products and services to fill your customer’s needs. Go to any place whose owner is also working there and you still feel that vibe. The satisfaction of a restaurant owner hearing that you enjoyed your meal or the proud gym owner who starts a conversation with every new face which happens to start attending for more than a few days and just wants to help. Sadly these businesses are outliners now. Nowadays MBAs are hired as CEOs and then Boeing happens in nursing homes. They are in fact bad businesses but no one seems to care. Returning to the article. The home owner didn’t care a little bit about having principles or trying to run a business that provides value to society. The argument was purely profit based. If there was a way to pre-file for eviction that was legal and costed 900 usd. They would have taken that instead of giving the 1k

bombcar 3y ago
Landlording of single-family homes especially is much more akin to capital investment than small business. A landlord who lives in one unit of a 40 unit apartment building that he owns is closer to the small business, especially if he provides the maintenance. The nice thing about the small business is that the profit is practically capped - once the owner has "everything he could want" he will basically stop trying to get more. But shareholder corporations never hit that point.