Skip to main content

How Does Your Business Make A Profit?

Every CEO, president and business owner have the same question: How do I make a business profit? Every business leader, no matter what industry or type of business, asks questions like this:

  • I’m making a profit. How do I make MORE of a profit?
  • I lost money this year. I don’t want to lose more money, what do I do to regain profit?


These basic business questions are interesting, essential and important to the success of your business.

Every day, ask yourself:

  • How do I make a profit?


The obvious answer is:

To make a profit your business must have goods and services somebody wants. In other words, fill a specific need.

Then, after you fulfill the need get the word out, however appropriate on social media including Facebook, LinkedIn, Twitter; direct mail; digital advertising, cold calls, content marketing or whatever works best to bring in the right customers or clients.

The key to sales is having the right prospect and the right number of prospects on a continual basis. Feast or famine with prospects doesn’t bring you a steady, dependable flow of profit. Without prospects you can’t tell your story about how your products and services will be of benefit. Without the ongoing sales process cycle you can’t make a profit.


  • But what does this all really mean about how your business can make a profit?

I like to look at business and how to make a profit in a different way.

Make A ProfitIf you really want to make a profit with your business, here’s the answer.

Two words (in this order):

  • Understanding
  • Communication


These two words are key to your business success – and to how your business makes a profit.

Understanding is a crucial “must have” to what your business offers regarding the customer or client wants/needs. Communication is necessary to any aspect of business.

  • How can you properly communicate unless you truly understand?

That’s why delivering the message is vitally important to how your business succeeds and makes a profit.


The concept of understanding and communication needs to run through your entire business. Top to bottom and everywhere in between. From prospects coming in your business doors or you reaching out to them directly; to the sales team, to the customer service team; to getting out the product on time and delivered as expected for the price paid – plus so much more to make it happen and have it all come together. To exceed expectations when possible.

Everything is about understanding and communication when operating a business to make a profit year after year. It always about delivering the message. Yes, it’s about sales – but you must go further than that. It’s about how you visualize and move through the process with everyone you meet; everything you do each day. Same with all your employees. More importantly, it’s how your customer perceives you and your company.

For example: If you have a business associate who is a vegetarian (or perhaps, a vegan) you probably shouldn’t go to a steakhouse for a meal together. Yes, there may be something on the menu the other business person can eat but you need to respect what they think in this situation. Take them to a place where they can be comfortable eating in an atmosphere they’ll feel good about. Make certain the restaurant is appropriate for those in attendance. This is how you create business relationships through understanding and communication.

Now apply this restaurant example to your business. As a CEO, president or business owner, you need to understand not just your customers but every employee who works at the company. Employees are key to how your business makes a profit.

Consider the organization and the processes you’ve put in place throughout the company.

  • How efficient is your company?
  • How productive is every employee?
  • How much do your employees enjoy working at the company and with your customers?


You need to communicate with and understand as much as possible everyone you work with. It doesn’t matter if it’s the employee answering the phone – who happens to have a very important role in the company as it’s the first impression customers receive when calling in. If you have delivery people, they also have a very important position. Not just to have a safe driving record but in how they represent the company upon the delivery of your goods and services to your customers. From the sales people to the janitorial staff to the accounting department – it could be anyone in the company. Every person is key to the success of the business – to how your business will make a profit.

For that very reason alone, every employee needs to understand exactly what they are doing each day at work. For you to understand and communicate to those that work with you and to improve your company, when possible, work side-by-side with employees in the different areas of your company. The experience will inspire questions, conversation and present ideas of new, better ways to do things. This leads to how profit margins can be improved.

You want to deliver the image and the message that you and your company are here to help. Yes, there is an exchange of money. But the primary impression is one of how you and your team can help current and potential customers or clients. If you can deliver on that promise, then people will buy from you. You can’t run a profitable business without consistent sales that are priced right for the value delivered.


People need to want to buy from you. You can have the best product or service but without understanding and communication, your business will not succeed as you would like it to. I’ve witnessed this time and time again (too many times, in fact) over the many years of advising CEOs, presidents and business owners.

It’s always about the customer. It’s not about YOU.

Ask yourself:

  • How can my company make life/business better for the customers we serve?


It’s also about the employees. Additionally, ask yourself:

  • What can I do for company employees so they really enjoy coming to work and doing their best?


  • If you’re not bringing people on board with your company vision by understanding each other and effectively communicating the message, then how can you expect customers to buy?

Mixed signals don’t add up to business profits! An environment of not feeling welcome, where the culture can be contentious with anger, strife and just not getting along does not bring success. You’ll just be “putting out fires” every day.


Remember: Business is about people. Without people, there isn’t any business. People are everything to your business – and to how you make a profit.

In business, everything is about understanding and communication. Two highly important words. I can’t emphasize the this point enough in this article.


As a business leader, you need to understand what it is that needs to be accomplished. Then communicate clearly the message – starting with employees and co-workers, then to the vendors to the prospects, to the customers/clients and also, to yourself.


Always keep present in your mind daily both words:

  • Understanding
  • Communication

If you improve understanding and communication, you will improve the bottom line and business profits will soar! This is the formula for your business to make a profit.


To your success!


Business expert and strategist, Howard Lewinter, guides – focuses – advises CEOs, presidents and business owners throughout the United States across a wide range of industries, to MORE success – MORE profit – less stress. Business people trust Howard’s vast business knowledge, practical advice, intuitive insight and objective perspective to solve business problems and issues. Get MORE from your business! Talk business with Howard: 888-738-1855.


Connect with Howard on LinkedIn

Follow Howard on Twitter

Like Howard on Facebook




Want More Success And More Profit In Your Business?
Sign Up For Free Business Tips And Strategies from Howard.

Your privacy is respected. Will never sell, rent, trade or share your email or information.