The Purpose of a Business

I have often heard small business owners say that they are comfortable where they are, that they are not looking to increase business, not looking to expand, they are happy with their current income level and the amount of work that they have to do and that they don’t have an interest in doing anything more than what they are currently doing.  This quite honestly is a horrible attitude for any business owner to have, small, medium or large.  The purpose of a business, including a small business is not to make you comfortable, its purpose is not to provide the owner with a paycheck so that he or she can live comfortably and do just enough to get to a comfortable point in life.  That is not the purpose of a small business.

The purpose of all businesses are the same, whether that is a small mom and pop operation or fortune 500 company, the purpose is the same, it is consistent across all verticals, it’s purpose is unwavering, and it is a simple one; the purpose of a business is to MAKE MONEY.  That’s it, nothing more, it exists to generate as profit.  It doesn’t matter if you have a DBA, are a sole proprietor, a corporation, or a publicly traded company, a business is its own entity, and has its own purpose, and that is to generate a profit.  Whether your small business is providing a service, or selling a product, it has a life of its own, and it has a purpose of its own, and that purpose is to generate a profit, have a return on investment that is sensible and to continuously strive to improve its bottom line, and if you are running your small business any other way than you are doomed for failure.  I say that because regardless of how successful your business is, regardless of how loyal your customers base is, a business cannot survive without constantly bringing in new clients, and continuously doing things to improve on the service and products,  bringing in new services and products,  because failing to do this is certain death for a business.  You can only survive so long on the loyalty of existing customers, eventually a better deal will come along, customers no longer need what you are offering, they move out of the area, they lose jobs, whatever… your business needs to consistently strive to improve itself, it needs to consistently strive to bring in new clients and it needs to consistently strive to increase the bottom line, to make more money.

So at the end of the day if as a small business owner you are not motivated to do these things that your small business needs, if you are burned out, been doing this too long, whatever the reason is, it may be time for you to move on, let someone else take over, whatever works, but your business needs to be fed, it needs innovation, it needs new clients, it needs to attempt to outperform where it is currently, it needs to create new streams of revenue, it needs to continuously grow and without this it is doomed to die.