In my experience there are way too many agents who treat the real estate business as a non-profit charity without the affiliated tax advantages. Here are a few thoughts on profit, distilled and processed through from Peter Drucker in his classic book on management.
- PROFIT is a result of the performance of the business in marketing, innovation and productivity. It is the test, the only effective test of performance.
- PROFIT is the premium for the risk of uncertainty. Economic activity because it is an activity focuses on the future and the one thing that is certain about the future is that it is uncertain.
- PROFIT alone supplies the capital for tomorrows jobs, both more and better jobs.
- PROFIT is a definition of economic progress that an investment needed to contribute to the overall health of the economy.
- PROFIT pays for the economic satisfaction of services of a society, from healthcare to defense, from education to opera. They all have to be paid out of the surplus of economic production, out of the difference between the value produced and its cost.
- PROFIT is the first, but not only responsibility of a business. There are social responsibilities, but if there is no profit, even the social responsibilities will suffer.
- PROFIT is required to cover its own future risks, to be able to stay in business and to maintain the wealth-producing capacity of its resources.
- PROFIT is a requirement of a business rather than a goal. Without profit there is no business.
- PROFIT is the result of doing things right rather than the purpose of the business.
- PROFIT is what you have in surplus when business obligations, risks and survival are paid for.
Carpe diem,
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Chris, great post for both a hindsight view and a view of how people should move forward in this market going into the future.