Join Eddie Davila for an in-depth discussion in this video Understanding profit, part of Business Foundations.
- Making money, being profitable,…that's the goal of every business, but it's not very easy.…No matter how big or small, companies of every size…often struggle to make a profit.…For example, did you know that Amazon.com…did not have one profitable year in the first 20 years…of its existence?…I'm serious.…How can that be?…How can a company not make a profit…and still be in business?…Well, before we try and answer that question,…you need to first understand the basics of profit.…
Profit is the amount of money left over…after a company pays all of its bills.…Profit is calculated using this simple formula.…Revenue minus cost equals profit.…Looks simple, but, in fact, it isn't.…That simple formula has so many layers.…Let's first concentrate on revenue.…Revenue is the amount of money a company collects…from its customers.…Think of a professional sports team.…Look at some of the different ways they can collect money.…
As you can see, this sports team has multiple…revenue streams.…With so many ways of generating revenue,…
Author
Eddie Davila
Released
10/8/2015He also reviews the basics of the people side of business: managing employees and developing customer relationships. Last, he covers the financial and information management aspects of business and provides a basic explanation of economics, so that you can understand the relationship of your business to the bigger picture.
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- Identify a company’s stakeholders.
- Examine an example that highlights how a company grows.
- Recognize how to make profit-related decisions.
- Determine the delivery logistics and transportation for a product or service.
- Explore the importance of reaching the ideal market for a product or service.
- Determine how much funding a business needs.
- Break down the ideal methods for recruiting, hiring, and training employees.
- Discover effective ways to manage employee relationships.
Skill Level Intermediate
Duration
Views
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Introduction
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Welcome1m 53s
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1. Business Basics
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Understanding profit4m 1s
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Who are your stakeholders?4m 39s
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What are your resources?4m 4s
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Example: How a company grows5m 44s
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2. Determining Your Product or Service
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3. Making and Delivering the Product or Service
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Buying the materials4m 47s
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4. Selling the Product or Service
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Knowing your market3m 11s
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Reaching your market4m 8s
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Marketing and selling3m 7s
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5. Funding Your Business
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Raising capital4m 36s
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6. Leading and Managing People
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7. Developing and Managing Customer Relationships
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Managing customer data4m 21s
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Planning for the future3m 39s
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8. Understanding Your Finances
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Defining accounting4m 1s
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9. Information Systems
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Managing your resources2m 24s
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Making better decisions4m 22s
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10. The Economy
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Role of economics2m 43s
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Supply and demand4m 4s
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Everyday economics4m 33s
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Conclusion
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Wrap-up2m 15s
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Video: Understanding profit