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Defining Terms: Profitability

By Jamshaid Hashmi Subscribe to RSS | April 30th 2012 | Views:
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Obviously, when someone buys a WSI franchise, he or she wants to make money.

Profitability is the bottom-line factor of anyone’s consideration of starting a small- or medium-sized business; how much money are they going to bring home, and how often?

So it’s crucial that a person understands how to define profitability.

The first way is to consider the return on investment (ROI). Investing $10,000 and getting back $75,000 is a very clear gain. Though again, one must make sure to consider the rate of return with the ROI. Getting that $75,000 over 75 years might not seem as desirable or profitable as getting it over 3 years.

The second way is to consider reinvestment opportunities. Very rarely does someone start a business and then simply sit around, making money, once it’s going. You may wish to invest in a new computer to give yourself better analyzing and creative abilities. You might want to hire someone to manage the books, or to make your appointments, thus freeing up your time to work directly with the clients and their end product. These are costs that can be seen to eat into profits at one point, but if considered as an investment and analyzed in how much money they allow you to save or bring in over the long term, they contribute strongly to the picture of overall profitability.

Time saved is the third consideration in defining profitability. Many small businesses tank because the owner didn’t do the research, or didn’t understand certain parts of the learning process before getting involved. That isn’t a risk with a franchise model — the testing is done, you simply have to learn what we offer in our training program. Thus, you save the time and energy of learning how to get things rolling, and don’t have to worry you’ve missed something and catch up later once you find out what it is. You get to work on your business from Day One.

Learn more about the profitable opportunities behind self-employment at http://bit.ly/WSIFranchise_MarketPotential

Jamshaid Hashmi - About Author:
About us :-
WSI Franchise Opportunity: WSI is the world's leading Internet Marketing Franchise providing affordable Internet solutions to small and medium sized business. WSI is the world's leading Internet Marketing.

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