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This. If your company clears one million in yearly sales and spends $980,000 to make that happen--you are running a $20,000 per year company. There is nothing w

by jsiarto 13y ago

This. If your company clears one million in yearly sales and spends $980,000 to make that happen--you are running a $20,000 per year company. There is nothing wrong with this, but I hate when these metrics get thrown around without context. There are $1M companies that make less profit than a hot dog cart (which subsequently, in the right location is a damn good business).

beat 13y ago
On the other hand, low-margin businesses are often low-risk, stable businesses. A grocery store has crappy margins, but excellent stability.
Axsuul 13y ago
This is unlikely which is why $!M companies are significant because most likely their margins aren't that low.