15 Jun In Business to Profit
Have you seen the white paper Generational Views of Entrepreneurship and Small Business from America’s Small Business Development Centers (SBDC) and The Center for Generational Kinetics?
It is full of interesting findings from the 2017 America’s Voice On Small Business Study, including:
And then there’s this eye-catching finding:
The national study found that 62% of Americans would rather have a business that makes a lot of money than a business that is a lot of fun. This drive is stronger than expected among millennials where 62% say they would rather take the money, while the perception is that they just want to have fun.
Certainly there’s been a lot of press about how millennials (defined as those those born between 1977 and 1995 in the study) want to make a positive difference in the world through businesses and as social entrepreneurs.
The SBDC/CGK study confirms that millennials are also pragmatists motivated by a fact I state in The Profit Mentality: The highest priority of business is to make a profit.
Some people say they are in business to deliver a certain product, or to provide a unique or special service. Many might say their goal is to develop a breakthrough technology or the next “killer app.” Others would say that delivering the highest quality product or service is their reason for being in business.
Although these are all very important aspects of running a successful business, they are not the reason you are in business.
Quality, customer service, meeting a specific need, or providing a useful product are among many important factors that contribute to the profitability of any company. Without them the probability of operating a profitable company is very low. However, at some point in the process you MUST make a profit in order to fund the operation sufficiently. Unless you have very deep pockets and a desire to run the business as an expensive hobby or as a charity, you will be unable to continue operating indefinitely without making a profit.
A company is in business to make a profit. There is no other higher priority, period.
The fact that Millennials prioritize making a lot of money is a good thing. With success comes the ability to achieve their dreams, whether its making the world a better place or keeping customers satisfied, happy, and coming back for more.