Don’t grab too much profit: It may wear-out your resources and employees
March 15, 2009 by Admin
Filed under Entrepreneurship
Some enterprise owners hardly encounter income opportunities specially this time of economic recession. However, some faces a lot of opportunities to grab marginal profits. Perhaps these opportunities are brought by nice marketing schemes and continuous development efforts. An ordinary business owner will not waste any time to seize an income opportunity and pull it to the fullest. This maybe the common rule for common business people out there – make a profit. But why I am telling you guys to not grab so much profit is a thing that you should keep in mind. As I stated it may worn-out your resources and even your precious employees.
The point is to have the right amount of profit. The right amount of profit is the level of profit that will give your company as a whole an increase in value. A company as whole is composed not only by its owner but also by its resources, employees and the company itself. Exhausting your company’s resources, machines, properties and human labor forces just to jump to an instant peak of profit is considered a bad move –especially in this time of global economic downturn. I am talking about exhaustion – exhaustion that means overusing your resources without proper preservation and conditioning. It also means over utilizing your employees without proper and enough vacation and remuneration. It may not really significant for material assets like machine and equipment, but for your employees who are human beings… the level of morale is one big thing that must be considered.
Profit can be planned and budgeted. It can be equally distributed by a series of time. In this way, there will be a normal flow rather than erratic flow of income in a particular company. A well planned and organized organization knows how to deal with this. In this approach, your assets and employees are not exhausted at a given period of time. Instead, they achieve a well balance work habits and schedules. A quality that is very important for an employee to stick in an organization.
It is a simple philosophy that we should embrace and understand – don’t take so much sweets, too much of that will weaken your body. Just like profit – don’t grab so much profit, it may worn-out your resources and employees. What I am emphasizing here is that business owners should not have so much profit for their selves, but they must see to it that their resources are properly conditioned and their human resources are properly benefited. If owners have standards for the output of their employees, employees have also standards for the benefits and compensation their employers can give. Of course these two standards must meet – and this must be achieved first before we grab an additional margin or profit.
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Great posting.
Thanks for sharing!
Hmmm, this leads to the question – how much is “too much profit”? Hehe.
Greed is part of human nature – and perhaps, the guiding principle is just about “being fair”.
And being fair is probably possible to achieve if one “puts himself on some other’s shoes”.
And being a business owner – will everyone willing to put themselves on their “employees’ shoe?” –
Hehe – seems I am not making sense anymore – but this one is a great article that business owners should reflect.
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Hehe. Nice mind exploration. Thanks for the comments. Fairness is really a thing that must be preserved, because if not, you may hit other people’s bodies, thoughts and emotions.
Wear out, not “Worn-out”
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Right. It should be -exhaust- not -exhausted-.
Thanks for the correction. Hehehe.
U know, I really need an editor for my articles.
With my busy schedules, sometimes I don’t have the time to proof-read.
NP.
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Hi Vic,
For me Japanese companies seems to understand this a lot better. The highest post in the company do not earn zillion time the income of the bottom post, its about 14 or 30 times, so the guy that cleans the floor have a very decent income. This can help in building loyalty between the employees to your company.
Hope more com. do this.
Luis
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Hi Luis,
I am glad you drop by here. That’s great for Japanese employees. I hope employers in our country understand and consider this.
Seems good company with high tech equipments. Defiantly will try their services at least for once. Hope to receive good quality service.
Interesting post. I think a lot of newer companies are in this situation as they expand and grow. It is only natural to want to milk employees for everything before giving in and hiring that necessary new employee. The longer you wait to get that new employee, the harder you may be pushing your current staff. As a result, your staff may not last forcing you to waste time and resources hiring & training new staff.
There is definitely a point in the business where going for that “extra” profit is not worth it, the margin of that profit is just so small, that sure you may make extra money, but you are gonna wear your resources out, and you'd definitely be better by not taking the profit, learned this in my econ class last year.
Till then,
Jean
This is a very good topic. It's very important to utilize your resources judicially rather than all at once for instant benefits. It will wear out the staff and prove harmful to the company in the long run.
This is a very good topic. It's very important to utilize your resources judicially rather than all at once for instant benefits. It will wear out the staff and prove harmful to the company in the long run.
I agree that people should treat people like people but does anyone know of a business who still doesn’t treat employees like an expense. I mean do they really have a line item on thier financials in the asset area.