Nothing Happens Until Somebody Sells Something

I have met a couple of people over my lifetime that have an amazing talent. They can raise unbelievable amounts of money for new ventures. Indeed there seems to be no end to the amount they can raise. The problem is these “new ventures” never actually do anything.

You see it doesn’t matter whether you have a manufacturing business, a wholesale business, a distribution business, a retail business or any other business, nothing happens until somebody sells something. The whole point of business is to exchange good or services for money. From time to time people get off track and seem to forget this. They think that the purpose of being in business is just to exist as a business. Never take your eye off the target. The purpose of business is to make a profit! Sure there may be specific times during any businesses development when profit is not a priority, during a restructuring, or a change in strategic direction for instance. But ultimately even these moves are undertaken to enhance the longer term performance of the company; to make more money.

If you happen to meet one of these charming money magnets who survive by convincing others to invest in their perpetually profitless businesses, run away! The true measure of the value of a business is who is buying and that can’t happen until somebody sells something!