Cash Eating or Profit Making Company

Many companies start doing their business but we wonder why most of them are into loss always. After some time they merge with another company or they just go bankrupt.
So why is this problem arise? The answer is,  they don’t know how to make a profit the way big companies are doing.
Here we will help you to how you can increase your profit.

We all know when we get sales more than our expenses our profit comes. After that we use that profit for more investment then again our profit will increase.
But it is not the guaranty of success for the company. But if we want to increase profit our expenses should decrease.
How we can get more profit? You will know all four steps.

Operating Cost

Most companies what they earn from sales use to spend money on operating costs. Here we have to just reduce operating costs by a small difference each month if we can do it.
Human mentality is capable to use the best way if we have fewer resources. Suppose if you eat on a smaller plate there is a possibility to eat fewer calories. This way you can manage your body.

But if in front of you,  a big plate of food is given. Then there is more possibility that you can eat more. So to increase profit manage operating costs well properly to get the best results.

Serve Better

What the sales you get from product take at least 1 per cent as profit and store it in a bank account. That will assure you that any bad things happen to your company then you can use this money to develop new products.
By this process, you will always be ready for the future security of a company. So make at least some profit or try to increase it.


When a company earn a profit. Here mentality comes on how they can use this profit. We use the profit for events, parties e.t.c. And this is wrong.
It occurs because of temptation. So to remove this temptation put your profit in various banks. By this when you are eager to take out money then various withdrawal rules come and then you will think to make money in a limited manner.


After all, these steps beware to follow a rhythm in your task, to allocate your financial account into the various name. Such as, firstly take some per cent of the money in the income account, then some amount into the operating account then some compensation to stakeholders and innovation cost to improve the product.

So many companies who just think about to manage expenses they become cash eating companies and atlast enter into bankruptcy. But those companies who are success they firstly manage profit and understand the core principles to follow in a systematic way for sustainable growth.