this post was submitted on 21 Aug 2023
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Not making any profit does not imply running for losses.
Many companies can run for minimal margins, ensuring they can pay staff, stock and services.
Profit is what is left on the table after every expense is paid, including salaries, which usually doesn't reach the workers pockets.
No but companies raising prices to make more money is absolutely related to making profit, and a worker-owned company still has a profit motive.
Companies being able to run at a loss is a feature of capitalism, not a bug. Most small businesses do not turn a profit for two to three years.
If a company sets its mark at not making profit, it does not mean it runs at a loss.
Was I unclear?
Profit is what is left after all expenses are paid, including salaries, and a company can run with a non profit objective and still create jobs with fair salaries.
Profit is the end goal for the so called investors that have no real involvement in the day to day operations of companies and demand quarterly reports with ever increasing revenue.
If a company makes enough money to pay salaries, replenish stocks and/or provide ita services and pay its daily and monthly expenses it is not running on a loss. Profit is not a requirement for a business.
I am aware that non-profits exist as a concept, but that's irrelevant to what we are discussing which is how profitability and viability are not necessarily linked