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	<title>Comments on: About</title>
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	<description>Thoughts on business and politics, the practice of public reations, and other topics of change</description>
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		<title>By: Bob Pritchett</title>
		<link>http://changeagent.wordpress.com/about/#comment-62</link>
		<dc:creator>Bob Pritchett</dc:creator>
		<pubDate>Wed, 11 Oct 2006 18:29:16 +0000</pubDate>
		<guid isPermaLink="false">#comment-62</guid>
		<description>Hi, Brian... I just found your blog post about my book. 

You&#039;re correct, my interactive decision maker is just to be cute. But it addresses the truth that a business doesn&#039;t have the ability to accomplish any mission, no matter how noble, if it isn&#039;t profitable.

Providing healthcare and paying a living wage is something companies do do with a profit motive. Companies need employees, and employees choose companies based on benefits, salary, etc. 

I see that you work just across the street from me, so I&#039;d like to invite you to meet for coffee or lunch; I&#039;d love to discuss your comments and thoughts on the role of businesses in society. I&#039;m pretty flexible on schedule; you can reach me at bob@logos.com.

I am also pasting part of the chapter containing the business-decision-making-flowchart below. I hope you&#039;ll agree that it contains a much less cynical, and un-biblical, motive for profit than the one you attribute to me in your blog post.

Thanks for your time and consideration,

-- Bob

Profit is Why You are in Business

Everybody understands that businesses exist to make a profit. Profit is so much a part of how we understand our society that when an organization is set up for any other purpose we explicitly label it a “non-profit” organization.

Maybe because it sounds greedy, small businesses in particular do not generally talk about profit. Instead they focus on their secondary purposes: to help individuals find the best life insurance at the lowest rates; to provide a worry-free roofing future; to bring the authentic taste of Chicago deep-dish pizza to Podunk, Wisconsin. 

Unfortunately, many people get so wrapped up in the secondary purposes of their business that they lose sight of the primary purpose. I was one of them.

Profit enables you to pursue your other goals

In the early days of my business I was consumed with growth and with “the mission”. We sell Bible software, so it was not difficult for me to see our work as something nobler than just making a profit. I believed that success meant providing our useful tool for Bible study to as many people in as many countries in as many languages as possible. 

Business is about numbers and I was a true devotee of the numbers. I tracked gross revenue, employee headcount, number of customers, countries served and languages supported. I made decisions based on growing those numbers. A lower price will sell more units? Let’s lower the price. A single customer asked for a Swedish version? Let’s build a Swedish version.

It wasn’t that I completely ignored profit. I checked in once in a while to see that we still had one. I just didn’t worry too much about how big it was and I did not take the time to find out exactly where it came from. In a high-growth business like ours, I reasoned, we were investing in the future, not trying to make money right now.

Rapid growth, some outside investment, and some very profitable projects held trouble at bay for a few years. But when it caught up with us it hit us hard: on sales of $4.6 million we managed to lose around $900,000. It had been our best year by every other measure. We had higher revenue, sold more units, and employed more people than ever before. We had simply failed to make a profit. In the months that followed our continued losses threatened our survival. I began to realize that if we did not make profit the focus of our efforts I would have neither the luxury of pursuing our mission nor the convenience of a place to live.

Making a profit is what enables a business to accomplish its mission. Profit needs to be the first priority or you will not have a chance to pursue any others.

...</description>
		<content:encoded><![CDATA[<p>Hi, Brian&#8230; I just found your blog post about my book. </p>
<p>You&#8217;re correct, my interactive decision maker is just to be cute. But it addresses the truth that a business doesn&#8217;t have the ability to accomplish any mission, no matter how noble, if it isn&#8217;t profitable.</p>
<p>Providing healthcare and paying a living wage is something companies do do with a profit motive. Companies need employees, and employees choose companies based on benefits, salary, etc. </p>
<p>I see that you work just across the street from me, so I&#8217;d like to invite you to meet for coffee or lunch; I&#8217;d love to discuss your comments and thoughts on the role of businesses in society. I&#8217;m pretty flexible on schedule; you can reach me at <a href="mailto:bob@logos.com">bob@logos.com</a>.</p>
<p>I am also pasting part of the chapter containing the business-decision-making-flowchart below. I hope you&#8217;ll agree that it contains a much less cynical, and un-biblical, motive for profit than the one you attribute to me in your blog post.</p>
<p>Thanks for your time and consideration,</p>
<p>&#8211; Bob</p>
<p>Profit is Why You are in Business</p>
<p>Everybody understands that businesses exist to make a profit. Profit is so much a part of how we understand our society that when an organization is set up for any other purpose we explicitly label it a “non-profit” organization.</p>
<p>Maybe because it sounds greedy, small businesses in particular do not generally talk about profit. Instead they focus on their secondary purposes: to help individuals find the best life insurance at the lowest rates; to provide a worry-free roofing future; to bring the authentic taste of Chicago deep-dish pizza to Podunk, Wisconsin. </p>
<p>Unfortunately, many people get so wrapped up in the secondary purposes of their business that they lose sight of the primary purpose. I was one of them.</p>
<p>Profit enables you to pursue your other goals</p>
<p>In the early days of my business I was consumed with growth and with “the mission”. We sell Bible software, so it was not difficult for me to see our work as something nobler than just making a profit. I believed that success meant providing our useful tool for Bible study to as many people in as many countries in as many languages as possible. </p>
<p>Business is about numbers and I was a true devotee of the numbers. I tracked gross revenue, employee headcount, number of customers, countries served and languages supported. I made decisions based on growing those numbers. A lower price will sell more units? Let’s lower the price. A single customer asked for a Swedish version? Let’s build a Swedish version.</p>
<p>It wasn’t that I completely ignored profit. I checked in once in a while to see that we still had one. I just didn’t worry too much about how big it was and I did not take the time to find out exactly where it came from. In a high-growth business like ours, I reasoned, we were investing in the future, not trying to make money right now.</p>
<p>Rapid growth, some outside investment, and some very profitable projects held trouble at bay for a few years. But when it caught up with us it hit us hard: on sales of $4.6 million we managed to lose around $900,000. It had been our best year by every other measure. We had higher revenue, sold more units, and employed more people than ever before. We had simply failed to make a profit. In the months that followed our continued losses threatened our survival. I began to realize that if we did not make profit the focus of our efforts I would have neither the luxury of pursuing our mission nor the convenience of a place to live.</p>
<p>Making a profit is what enables a business to accomplish its mission. Profit needs to be the first priority or you will not have a chance to pursue any others.</p>
<p>&#8230;</p>
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