Every year we witness thousands of people setting up their own business. But soon they vanish. Main reason behind it is that they think that they can make lots of money from it but are unable to make. Business or enterprise is an organization that involves trading in goods, services or both to consumers. Profit, Money is it the ultimate aim for a business? Or the aim is something different. The answer is later. The Purpose of Business should not be to make a profit. Although its agreeable that profit is one of the most essential element of a business as without it a business cannot run or survive in the market but it is not the most important element. Though not all, but many of us, believes and has a myth that making profit is and should be the ultimate goal of businesses. However recently a new trend has been emerged. This trend is to deliver value to all its stakeholders.
So what should be the main goal for a business? To maximize profit or to satisfy all its stakeholders? Have a close look on both the ideas and let the reader only decide what is good for his or her firm.
Profit: Essential but not Important
Profits are obviously necessary for any business to survive but not the main motto for the existence of the business. It is like an oxygen for the human body. Without oxygen the body will not be able to survive. It provides the body with energy. In a very similar fashion profit also supplies energy to the business. However other than oxygen there are many other things that are necessary and important for the survival of mankind. It is not that we can survive on Earth by inhaling more and more oxygen only. Moreover too much oxygen intake is harmful to the body also as it can damage the cell membranes similarly profit maximization without thinking of any other element can hamper the business of oneself. If the total focus would be on profit then there is a chance that one can ignore the customer and give them a second priority which is definitely not good for the firm. Money can’t give happiness. What gives happiness is the meaning in life and relationship which we build in our span of life. Profit should not be the starting point or the main thing for a business instead one should think it as a feedback for what needs more and more improvement.
Main Purpose: To Create Customer Satisfaction
By the people, for the people and of the people should be the motto of a business. The main purpose of a business should be to provide value the stakeholders. People are not inspired if we show them the money instead they look for the purpose, autonomy and mastery. When a business is able to provide a worthy purpose apart from selling its products then only it will be able to motivate people to get involved with the business as a customer, employee, and collaborator. A business is to create a customer as the customer is the only foundation of a particular business and it plays a major part for the existence of a business.
Even today also many people think profit maximization is the major and correct thing for business success even if it is not good from moral perspective. Profit is not the purpose of business and the concept of maximizing the profit is not only meaningless but at the same time dangerous also. Yes, I agree that we are selling and promoting the goods, but, if we start making this our real focus and forget the purpose then the business is not going to be effective in the long run. Infact its a proven fact that a business that is driven by a solid purpose and caters all the needs of its stakeholders perform remarkably in the market.
For a business to be successful profit is important but one should also remember that profit maximization should not be the only purpose as it is neither good for the society and is very hazardous for the health of an enterprise. Profit maximization can cause organization toxicity in a same manner as oxygen toxicity can damage the body of oneself. But don’t take my words for granted. Do those things that are right for you, that inspires you and ultimately works for you. Would be more happy to hear your approach and purpose of your business.
About The Author: Emily is a writer/blogger. She loves writing, traveling and reading books. She contributes on punchh