Good morning & happy Monday!
“Business is all about solving people’s problems at a profit.”
Paul Marsden, former member of the UK Parliament
Profit. What a beautiful word. Difficult to achieve, but a principal that has turned dreamers into millionaires, made poor people rich and made American the freest, wealthiest nation in the history of mankind.
One of the richest human beings in the world is Amazon founder Jeff Bezos. He was born to parents aged 17 & 18 years old and worked on his maternal grandparent’s ranch in Texas. What brought him from that modest childhood to his net worth of almost $200 billion today? A business with an objective of profitability.
Profits are the #1 objective of every (for-profit) business ever to exist.
Why did the corner dime store exist 100 years ago? To make a profit. Why does Apple or Amazon exist today? To make a profit. Why does every small business owner work hard to achieve? Profit.
Take away profit and you take away human ambition, you rob the human spirt.
David Letterman was an extremely funny late-night comedian for decades. I came across this quote from him recently: “I vote Democrat because I believe that businesses should not be allowed to make profits for themselves. They need to break even and give the rest away to the government for redistribution as the Democratic Party sees fit.”
With all due respect, I could not disagree more with his thought process. Profit is not a dirty word, it is not a problem, it is not a sin, it is not evil. Profit is a beautiful thing and a baseline for a productive society.
A business that does not make a profit is either a business struggling, a not-for-profit endeavor, or a business that won’t be a business for long.
If I worked for a company that was losing money or barely breaking even, I would be concerned about my job security. Profitable companies are good for workers, good for investors, good for society.
Intentional Wealth is a business that I own. I love what I do for a living and I have an amazing client base that I believe I provide a valuable services to. My business objective is to make a profit and the harder I work to solve my client’s financial issues the more profitable my business is. It’s a wonderful thing. The more profitable my clients are the more profitable my business is too.
If I can’t make a profit, then there is no reason for my business to exist. The same goes for every business out there. If Amazon stops making a profit you will stop receiving boxes from Amazon at your door (Heaven knows that my wife would not be a happy camper in that event 😉)
As investors what do we want? To make money
What does every for-profit company want to do? Make money for their owners
So, if I can be an owner of a company that’s objective is to make money for their owners then I most certainly want that business to be as profitable as they can be. More profit for the companies I own = more money I make.
So, the next time you hear a politician or comedian or anyone bashing business profitability than I would encourage you to realize that a society of not-profitable businesses is a society that is not thriving.
It is with great joy and excitement that my team and I work hard to maximize your profitability!