What is profitability?

Profitability is your ability to make a profit. Peter Drucker says your purpose for doing business is to cause a profit to be made. There is no justifiable reason to be in business if you are not going to make a profit unless, of course, you’re a nonprofit business by choice … not circumstance.
I ask builders all the time why they’re in business. Most say, “Because I love to build homes for people” or “because it’s my passion.”

That’s honest and commendable; but if you don’t make a profit, you can’t stay in business. I love what I do, too. I would do it for free if I could; but I can’t afford to do that…not for long anyhow. It costs money to fly across country, stay in hotels, dress professionally, upgrade technology, produce sales materials and operate my business. While my mission is to impact and improve the lives of people across America, that’s not my goal. My goal is to make a profit. If I don’t do that, I can’t complete my mission.

It’s the same with you. As a builder, your passion may be to build homes that people love to buy, but if you don’t make a profit, you won’t be able to build those homes and pay your subcontractors and suppliers.
Your mindset should be, “I am a business person first. I have the ability to my use talents, skills, expertise, proficiency, gifts and resources to make a profit.”

Profit-ability. Develop it. Achieve it.

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