Hey Trip, remember......

[JsJs24]

Remember our discussion we had about profits in the business world? You said profits are not important I believe is how you worded it, or perhaps are not necessary for a business to prosper, and talked about the S-curve and such. Well, I just got finished listening to the audio book "The Science of Success" by Charles Koch of Koch Industries. Koch Industries is one of the most successful private owned companies in the world with $98 billion in revenues over 85,000 employees. Koch himself is estimated by Forbes to be worth $17 billion. And keep in mind, this is a private company started by his father. It was worth $60 million when Charles took over as CEO and he grew it to $98 billion.

Well, guess what?! He explains that the most important factor in any company is PROFIT. And of course, he goes on for an hour explaining why that is, and that any company not concerned with their profits will eventually be out of business (unless bailed out of course).

I am not looking to start another debate over this with you but merely wanted to mention it.

[BICEPBULG]

Re: Hey Trip, remember......

Isn't profit what it's about. I have my own business and without profit there is no reward of doing business. No profit equals breaking even or going under. Neither is good in my eyes.... Just my 2 pennies.

I am looking into opening up my own full time business soon. So I am all ears on this.

[JsJs24]

Re: Hey Trip, remember......

Isn't profit what it's about. I have my own business and without profit there is no reward of doing business. No profit equals breaking even or going under. Neither is good in my eyes.... Just my 2 pennies.

I am looking into opening up my own full time business soon. So I am all ears on this.

Congrats on owning your own business. Yes profit is key. I just had a big debate with Trip a while back and he was attempting to convince me that profit is not the key to a successful business.

You should read the book I was referring to, "The Science of Success" by Charles Koch. Koch Industries is the largest private company in the United States, which he attributes the success to 'market based management' (developed by Koch industries). He is also a very strong viewed Libertarian and supports Austrian Economics, thus the book emphasizes the Austrian view on business and the free market.

[rc10j1]

Re: Hey Trip, remember......

I bet I'd win every bid I put out if I didn't put any profit in it! A weld take 5 minutes too long and I'd lose my ass though!

[horsepwr]

Re: Hey Trip, remember......

yeah. I'm no economist nor CEO of 85000. But I will add. I do agree, 100%, that profit is key to maintaining a successful business

[JsJs24]

Re: Hey Trip, remember......

yeah. I'm no economist nor CEO of 85000. But I will add. I do agree, 100%, that profit is key to maintaining a successful business

I am still shocked that we ever even had such a debate. I don't understand how anyone could ever imagine profits not being necessary for a business to survive and prosper.

[trip]

Re: Hey Trip, remember......

find that post and win a grand

i say a million times, GROWTH IN SALES LEADS TO GROWTH IN PROFITS

i know who koch is and his companies

profit supports all debt, it's all about proit

The S curve is about adaption of new products into mass markets, and along the curve there is a corralry with costs and profits, the sweet spot of profits begins at ten percent penetration, which can take 10-20-30 years, PC's are perfect example, came out in 1980, hit 10% in 1995, within 7 years in us of a, it reached 70%

cell phones designed in 1960, 1085 first time really affordable, in 1995 hit 10%, by 2005 90% penetration

[JsJs24]

Re: Hey Trip, remember......

find that post and win a grand

i say a million times, GROWTH IN SALES LEADS TO GROWTH IN PROFITS

i know who koch is and his companies

profit supports all debt, it's all about proit

The S curve is about adaption of new products into mass markets, and along the curve there is a corralry with costs and profits, the sweet spot of profits begins at ten percent penetration, which can take 10-20-30 years, PC's are perfect example, came out in 1980, hit 10% in 1995, within 7 years in us of a, it reached 70%

cell phones designed in 1960, 1085 first time really affordable, in 1995 hit 10%, by 2005 90% penetration

You are confusing the Supply curve. Different industries yield different results in profits. For instance, if you open a subway you better hope to see profits in sooner than 10-30 years or you're finished. All we have to be concerned with is that Revenues-Costs=Profits, and if you have negative revenues good luck staying in business.

This discussion as I feared is not worth furthering. I do not need a lesson in Economics or Finance I assure you.

[trip]

Re: Hey Trip, remember......

subway is not a new mass market product

[JsJs24]

Re: Hey Trip, remember......

subway is not a new mass market product

I understand that Trip, but my point was that a company has to profit or they won't survive for long.

[FUZO]

Re: Hey Trip, remember......

I understand that Trip, but my point was that a company has to profit or they won't survive for long.

trip might not understand that yet jsjs.

[JsJs24]

Re: Hey Trip, remember......

trip might not understand that yet jsjs.

Lol, I don't know what is so difficult to understand about this. I should have never brought it up again.

[FUZO]

Re: Hey Trip, remember......

I always thought when you open a company its always about making profits.