Reasons for Business

What Business to Engage In.

1. Why do you choose to do business now? The question is to be remembered at every stage of the business growth. Your reason(s) might be your driving force. If the reason is weak your business may fail along the way.

2. The reason for your engagement in business might also determine the possible varieties of business you can venture into. For some, the reason for their engagement is to make so much money. While for some, it is to make money just enough to meet their needs. Also for some, it is because they love doing such trade. Such people are said to be hobbyist of that business they do. And so on. I want to say that for whatsoever reason you do a business, it is good. But be reminded that your reason contributes to what kind of business you should do. It also suggest how to go about the business. It tells how to grow the business. Most importantly, it defines the aim and the vision of your business. So sit back and dig out your appropriate reason(s) for starting and doing a business.

3. For those who want to start and do a business to grow so much money as to be very rich or wealthy, the business to go into might not necessary be a business that requires a multi billion dollars start-up capital. Yes, I know you might be marvelled by what you just read above. The truth about business is "profit is not completely determined by the input capital".

"profit is not completely determined by the input capital"

Take for instance, a house owner who spends about 10 million dollars to erect and finish a house of 5 tenants capacity. The landlord receives an annual rent per tenant of 200 thousand dollar. Which amounts to a total of (200,000 * 5 = 1,000,000) 1 million dollar in a whole year. This should take him at least 10 years to recover his capital in cash.

Take for another instance,

A business man who started an housing agency work with little or no capital. All he started with was cash for his transportation to reaching his building owners and the buildings, and also to reach his potential customers. This input capital might just be as minimal as 50 US dollar or zero dollar. If the building agent sees a building worth of 40 million dollar, he can have a profit of 20 thousand dollar from the sale or rent. Depending on the settlement of the locality, the agent can make up to 10 million dollar in a year.

As you can see and agree with the following justification that "factors that determine profit from a business are critical".

This leads to the Careful Selection of Business for Optimal Growth.