Profit fuels a healthy cash flow, which allows for various business processes to run at optimum level. This means that the overall performance of a company can be improved from top to bottom, because all departments can be funded to:
- Establish efficient internal and external systems across all stakeholders
- Hire highly skilled employees for each function
- Satisfy employees with fair compensation and good management
- Encourage employees to excel
- Provide quality service to all clients
- Attract even more quality employees, clients and investors
- Improve company reputation and collective sense of achievement
- Expand business ventures
Everybody wins. That’s what sustainable profit can do. Business owners can run operations knowing that whatever hiccup comes their way, they’ll have resources to deal with it successfully.
If a company perpetually loses money, this inevitably becomes a major problem for employees who eventually won't get paid on time – or at all. Operations would come to a halt, and owners will be under extreme pressure from clients and investors. Stakeholders would naturally be wary of engaging in further transactions when they see you’ve run your company to the ground. No one’s happy.
On the other hand, if you take care of your cash flow and exhaust all reasonable efforts to keep it healthy, you’re laying the groundwork for continued success. All your resources, investments, blood, sweat and tears pay off, financing another year of stability for your company. Complaints from across the board diminish as you position yourself in a positive environment, where everyone is secure about the future of each job, project, department, partnership, and the company itself.
Confidence is essential for people who want to do well in any type of business. The business world is extremely cutthroat, and can be very tough to navigate in. If your business isn't doing well, you might have a hard time feeling good about yourself as you stare at the numbers, compare yourself to competitors, and hear about all the complaints. It would be more difficult to encourage your employees to stay driven as well. This hardly produces positive results, and usually leads to a vicious cycle of failure.
Sustained profitability validates you as the business owner, and boosts employee morale. With stable and increased levels of profit, you can now be perceived as a successful and reliable player in the game. Prospective employees will want to work for you. Prospective clients and investors will want to work with you. You’ll have a wider selection of people to choose from, which allows you to pick only the best of the bunch. This helps you maintain your performance and reputation, and opens up numerous opportunities for your business.
In this day and age, many people equate their sense of self to their career achievements. A promising career can give you a strong sense of worth and purpose, while a slow-moving or unstable one can bring self-doubt and pressure, then leak stress into other parts of your life. Dwindling finances often lead to long, sleepless nights. It can interfere with your relationships, and even take a toll on your health.
If you want a career that's both stable and fulfilling, then profit should be a focal point for you. Having the capacity to enjoy a comfortable lifestyle, provide for yourself and your loved ones, support a cause you believe in, grow and sustain your company – then at the end of the day, you take in that priceless sense of fulfillment that encapsulates all your successes. At this point, you can give yourself a pat on the back and rest easy; knowing that you did well, and that you’re on the right track.