i haven't written much on my blog, reason being, I am reading, busy with few things. One more thought always runs in my mind.
Is success is needed in any venture? Are there business whose main intention is to sustain and emphasise less on profits? or there are none.
Lets assume a company is started afresh. Private partners pool money and start running the business. After few years it turns profitable. The company goes public and then stocks of the company are brought by general public.
So now this company, has it got to be profitable all the time to pay dividends to the share holders? Can't it be that it sustains itself year after year doing same amount of activity?
If the company is not public and in the hands of private stake holders, do they opt for profit after profit or are they happy with uniform profit all through the years.
Why I'm writing this post is, the company in hope of turning more profits makes more investment into assets and manpower and other stuffs. In the end, if the company does not get much contracts to service and turn a profit or if the goods or services made or provided by the company are not sellable, there is no chance of profit, then what the company will do?
Will the share holder either public or private be ready for a loss. How many years can they run in loss, who will fund them, in the face of too much competition, is there a chance for turnover. To take over competition the company has to invest more and more, can they get back the invested amount atleast forget profit.
Also what I saw in Bangalore is that, the infrastructure is so so poor that, anything which has to sell has a heavy dependency on infrastructure. Now there is mall which sells high tech stuffs at this so called place. With such traffic during the day, do you think I would venture out into the mall or would I stay indoors peacefully.
So does infrastructure play a role. and if the service provided by the company is of a minimal cost, to make a profit, how much should the company sell to make profits?
Cheers,
Is success is needed in any venture? Are there business whose main intention is to sustain and emphasise less on profits? or there are none.
Lets assume a company is started afresh. Private partners pool money and start running the business. After few years it turns profitable. The company goes public and then stocks of the company are brought by general public.
So now this company, has it got to be profitable all the time to pay dividends to the share holders? Can't it be that it sustains itself year after year doing same amount of activity?
If the company is not public and in the hands of private stake holders, do they opt for profit after profit or are they happy with uniform profit all through the years.
Why I'm writing this post is, the company in hope of turning more profits makes more investment into assets and manpower and other stuffs. In the end, if the company does not get much contracts to service and turn a profit or if the goods or services made or provided by the company are not sellable, there is no chance of profit, then what the company will do?
Will the share holder either public or private be ready for a loss. How many years can they run in loss, who will fund them, in the face of too much competition, is there a chance for turnover. To take over competition the company has to invest more and more, can they get back the invested amount atleast forget profit.
Also what I saw in Bangalore is that, the infrastructure is so so poor that, anything which has to sell has a heavy dependency on infrastructure. Now there is mall which sells high tech stuffs at this so called place. With such traffic during the day, do you think I would venture out into the mall or would I stay indoors peacefully.
So does infrastructure play a role. and if the service provided by the company is of a minimal cost, to make a profit, how much should the company sell to make profits?
Cheers,
