Comments on: Reminder – success equals profits

By: Finance Geek » Profits, success and subscription models

Finance Geek » Profits, success and subscription models — Tue, 08 Sep 2009 10:17:37 +0000

[...] week I posted that success equals profits and got an email response from William Reeve, saying very true, and good post, but don’t forget [...]

By: martinowen

martinowen — Fri, 04 Sep 2009 13:35:55 +0000

Until there are profits, any enterprise is less than a zero sum game. In a buy out, or even in an IPO, losses are passed from one investor to another. It is only when a product/system/service is actually genreating added value can it be successful. Individual investors can be successful – but that would be as a result of some other investor's loss. Only when returns exceed investment is there a real “success”

By: martinowen

martinowen — Fri, 04 Sep 2009 07:35:55 +0000

By: brisbourne

brisbourne — Thu, 03 Sep 2009 10:26:02 +0000

That warm glow inside is no substitute for a good meal…

By: Alx Klive

Alx Klive — Thu, 03 Sep 2009 10:24:00 +0000

Great point Nic. A return for shareholders can come in different ways and is not necessarily predicated on profits as you say. Another source of return for shareholders could be a share buyback.

By: Philip Wilkinson

Philip Wilkinson — Thu, 03 Sep 2009 10:18:01 +0000

Nick – are you sure success isn't just about how many times you can get your business name mentioned at networking events and dinner parties?

By: csertoglu

csertoglu — Thu, 03 Sep 2009 09:29:45 +0000

Great point Nic. One additional axis that may be considered is value creation. I see companies that turn a profit (spammers, etc.) that can identify an opportunity and go after is aggressively, that end up generating returns to their shareholders. I find it hard to call them successful. There needs to be “thick” value for success.