When it comes to running a business, generating profit is essential. Profit is the lifeblood of any business endeavor, and without it survival is impossible. Profitability, however, is far from a simple mathematical equation, comparing in-the-money and out-of-the-money. In fact, this is also a state of mind.
Profit brings with it courage. Courage to take risks, be creative, innovate and evolve. When there is no profit, there is no investment and without investment, businesses are weak and unable to move with the times and adapt to changing demands. Simply put, without profit, you’re on borrowed time.
The challenge
The last few years have thrown everything up in the air. While we may tire of recounting the same repeated narrative about the impact of the pandemic, the reality is that for many, their businesses were dramatically altered, which again will never be the same.
In addition to the global impact of the Covid-19 pandemic, the UK economy was also affected by the economic downturn caused by Brexit – much of which continues today. Indeed, London’s economy is said to have shrunk by £20 billion alone in the four years since Brexit and the average Briton was £2,000 worse off last year*. Then, add in the staggering increase in the cost of living and the cost of doing business, and it’s easier than ever why profitability has become harder to achieve and more important to chase.
And now, we have more costs coming down the line. The announcement of a rise in the National Living Wage in the recent Budget has once again shown that although the Government is looking very happy ahead of the election, their outlook for UK business is very positive.
No one would argue about the importance of paying a fair wage, but at the risk that it means fewer people will be employed because the cost of doing business is so high? No, surely there is a better way?
Without profits, how would entrepreneurs reinvest in their businesses? How will they grow, develop, advance? How can we compete globally as a nation? In the UK, we have a rich and varied history of innovation and creativity. We have a long history of creating powerful IP across all manner of industries, from engineering to technology and aerospace. We have long been world leaders, yet without a clear drive to invest and improve, given the right conditions, it is inevitable that we will fall behind other nations.
We must create the right environment to encourage investment and growth. We must think differently. Prioritizing profit has never been more important because with it comes the desire to compete and win. Those involved in the E2E 100 Profit have embraced it with enthusiasm, daring to be different and daring to take risks, fully committed to reaping the rewards.
Now is the time to do things differently. For the sake of business, for the sake of business and for the sake of the country.
Source: London.gov.uk, 2024