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Following are more detailed explanations of the success
factors.
Profit
Profit means to create more money than you started with. A
business must generate profits in order to survive in the long
term. It is common for new businesses to lose money in the
first few years. Initial losses, or having losses in other years,
does not mean the business will not be successful. However,
over time, the trend must be to generate ongoing profits,
otherwise the business will run out of money and have to shut
down.
Profit for the business owners can also be generated by
selling the business at the right price.
Maximizing profit is not always the best strategy. You can
achieve profit in the short term by cutting corners or doing
things that may not be sustainable in the long term. For
example, a business that reduces the quality of its product to
save money, may find that customers will stop purchasing. A
business that underpays its employees may show more profit
in the short term, but employee morale may become so low
that operations will be inefficient and employees may
eventually quit.
Achieving and maintaining profit is a difficult balancing act.
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