{"id":742,"date":"2012-08-28T09:00:03","date_gmt":"2012-08-28T13:00:03","guid":{"rendered":"http:\/\/www.changinglanes.biz\/?p=742"},"modified":"2015-11-07T06:58:15","modified_gmt":"2015-11-07T11:58:15","slug":"the-law-of-profitability","status":"publish","type":"post","link":"http:\/\/www.changinglanes.biz\/index.php\/2012\/08\/28\/the-law-of-profitability\/","title":{"rendered":"The Law of Profitability"},"content":{"rendered":"<p>Like the law of gravity, the Law of Profitability does not change over time.\u00a0 Everyone knows that a business must make enough money to pay all its bills but often employees and customers forget that businesses are in business to make a profit.\u00a0\u00a0 Knowing what your profit does for your business needs to be clear. Profit is key to <em><span style=\"text-decoration: underline;\">fueling growth<\/span><\/em>, <span style=\"text-decoration: underline;\"><em>capital improvements<\/em><\/span>, <span style=\"text-decoration: underline;\"><em><em>employee bonuses<\/em><\/em><\/span><em>,<\/em> <span style=\"text-decoration: underline;\"><em>c<\/em><em>orporate sponsorships<\/em><\/span>, having &#8220;<span style=\"text-decoration: underline;\"><em>rainy day funds<\/em><\/span>&#8220;, and <span style=\"text-decoration: underline;\"><strong><em>rewarding the risk takers<\/em><\/strong><\/span>.<\/p>\n<p>&nbsp;<\/p>\n<p>If you wonder what people think your business does with your profit &#8211; <span style=\"text-decoration: underline;\"><em>ask<\/em><\/span>.\u00a0 You&#8217;d be surprised!\u00a0 Here is what I&#8217;ve heard in the trenches over time to the question &#8220;<span style=\"text-decoration: underline;\"><em>what does this company do with profit<\/em><\/span>?&#8221; :<\/p>\n<ul>\n<li>&#8220;Bonuses are paid to key employees&#8221;<\/li>\n<li>&#8220;New computers were purchased&#8221;<\/li>\n<li>&#8220;This company is profitable?&#8221;<\/li>\n<li>&#8220;At the end of the year, management always buys stuff that we really don&#8217;t need but the accountant says to do it.&#8221;<\/li>\n<li>&#8220;We always have losses so we don&#8217;t pay taxes&#8221;<\/li>\n<li>&#8220;Owner(s) buy toys or pay themselves bonuses&#8221;<\/li>\n<\/ul>\n<p>All kidding aside, minimizing taxes is something that good business owners do, but profit and cash flow are hugely important to the survival of a business.\u00a0 Sharing information about what your profit is doing, helps employees follow your aspirations and provide better understanding of their long term commitment to your company.<\/p>\n<p>&nbsp;<\/p>\n<p>Profit is a good thing and without it, businesses will not thrive &#8211; that is the unwritten law of profitability.\u00a0 Thriving in business is a great goal and knowing where your business will be in 5 or 10 years is something that will help you keep great employees and customers.\u00a0 Get a quick scorecard on how your business is moving to Thrive &#8211;&gt;<a title=\"Sellability Scorecard\" href=\"http:\/\/www.sellabilityscore.com\/changing-lanes\/linda-fayerweather\"> Scorecard<\/a><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Like the law of gravity, the Law of Profitability does not change over time.\u00a0 Everyone knows that a business must make enough money to pay all its bills but often employees and customers forget that businesses are in business to make a profit.\u00a0\u00a0 Knowing what your profit does for your business needs to be clear. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[1],"tags":[],"class_list":["post-742","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/posts\/742","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/comments?post=742"}],"version-history":[{"count":6,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/posts\/742\/revisions"}],"predecessor-version":[{"id":3178,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/posts\/742\/revisions\/3178"}],"wp:attachment":[{"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/media?parent=742"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/categories?post=742"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.changinglanes.biz\/index.php\/wp-json\/wp\/v2\/tags?post=742"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}