The success of a business depends on the profit a company earns continuously. So, what is profit? And why does earning profit is strongly influential on the stability of the company? Profit is the money that a company earns which equals the company’s revenues minus expenses. Profitability is an essential factor in business and no company is capable of development without turning a profit.
Profitability has a strong effect on business operation expansion. As long as the company desire to attract investors, the business owner should demonstrate that the investors can receive the benefits they deserve with their contribution. The more demonstration of securing finances, the more capital investment they acquire to expand their business as well as take a competitive advantage in the market.
Profitability is also an essential factor in the company’s competence. Human resource is a critical element in the development of the company. On the other hand, a company that has a stable profit can take advantage to attract professional employees and afford to pay employees’ salaries which is one of the necessary parts of keeping a motivating environment. On the other hand, the more capital investment company has, the easier the company to take a training course for their employees to grow their skills. Working in a motivating environment, the employees always keep enthusiastic to contribute to the development of the company. For example, Hoang Anh Gia Lai group which was established in 1990 as a small factory that produces furniture and employing 200 workers is becoming an international corporation, because of its sustainable strategies in human resources and business.
The success of a
business
depends on the
profit
a
company
earns
continuously
.
So
, what is
profit
? And why does earning
profit
is
strongly
influential on the stability of the
company
?
Profit
is the money that a
company
earns which equals the
company’s
revenues minus expenses. Profitability is an essential factor in
business
and no
company
is capable of development without turning a profit.
Profitability has a strong effect on
business
operation expansion. As long as the
company
desire to attract investors, the
business
owner should demonstrate that the investors can receive the benefits they deserve with their contribution. The more demonstration of securing finances, the more capital investment they acquire to expand their
business
as well
as take a competitive advantage in the market.
Profitability is
also
an essential factor in the
company’s
competence. Human resource is a critical element in the development of the
company
.
On the other hand
, a
company
that has a stable
profit
can take advantage to attract professional
employees
and afford to pay
employees’
salaries which is one of the necessary parts of keeping a motivating environment.
On the other hand
, the more capital investment
company
has, the easier the
company
to take a training course for their
employees
to grow their
skills
. Working in a motivating environment, the
employees
always
keep
enthusiastic to contribute to the development of the
company
.
For example
,
Hoang
Anh
Gia
Lai
group which
was established
in 1990 as a
small
factory that produces furniture and employing 200 workers is becoming an international corporation,
because
of its sustainable strategies in human resources and
business
.