MasterPo says: This blog is about topics and issues that are of importance to me. I am not one of the countless blogging lemmings that are tripping over each other scurrying down the hill and off the cliff of blogging oblivion trying to write the greatest blog on the latest topic de'jour. Your comments are welcome.

March 5, 2009

The Purpose Of A Business

Normally I don't like repeating myself. But this is a subject I now feel it needs to be restated once again:

The purpose of any business is to make a profit for its owner(s). Period!

A business is not a social services program! -

A business is not a jobs/works program.
A business is not a job training/retraining program.
A business is not a health care program.
A business is not a retirement program.
A business is not a rehab or counseling program.
A business is not a day care program.
A business is not a community funding program.

The business exists to provide goods and/or services and to collect as much payment as possible for those products and/or services. Obviously, in the majority of situations a business can't just charge what it wants for something. At some point market forces end up limiting how high the price can go before consumers of the product/service start reducing their purchases in favor of another business's products/services which are cheaper. Or just stop buying altogether.

If the owner(s) of the business choose to willfully operate the business in such a manner as to reduce the profit making of the business in order to advance some social concept that's their choice. But the basic purpose of having a business isn't to provide social services to the employees.

Whether you choose to believe it of not business do provide these things to their employees and the community they are in as it is. Perhaps not as much as you want them to or to the extent you think they should but they do. It's the nature of being a business with employees today.

To be in business with employees means you need people to do task that either you are unable to do yourself because you lack the skill or simply don't have the time to do it all. And in order to attract good people to your employ and to keep them working for you the business has to offer at least some aspect of benefits. Maybe not all the bennies you think they should or to the amount you think they should be but they do have to offer it. Very few good people will work at a company that offers little or no benefits like insurance and some kind of retirement plan.

Nobody starts a business solely for the express purpose of hiring people and giving them a paycheck, insurance, retirement funding, paid time off, etc. No business would ever get past day-1 with that as a mission statement! And more importantly, when you come to understand the loooooong hours, high costs and great personal risks that a business owner takes on in starting and operating a business it becomes even more obvious that no one in their right mind would put themselves through all that just to give handouts to someone else!

If an individual business's owners want to operate the business in a manner that does these things that's their decision. If the business owners believe they can deliver the goals of the business, generate the cash flow needed for all this social loving, and remain viable for the long run that's up to them. But it is not in anyway, shape or form an intrinsic aspect of a business per se.

So grow up and take command of your own life!

You are the CEO of yourself – act like one!

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