How to build a profitable business

The goal of any businessman is to have a profitable business. In order to build such a business, you need to know what profit is in its essence. It seems everything is clear here – profit is the positive difference between income and expenses for the production or purchase and sale of goods and services. Accordingly, if you want to make a profit, you need to increase this difference.

But if you increase the difference, it may happen that in general no one will buy anything. Why? Because, in fact, profit is the difference between the costs of producing or acquiring and selling goods or services and the value of these goods and services. In other words, a profitable business is when the value of a commodity is higher than its price. Continue reading →