What Is the Oldest Rule in Business?

Simply this, Make a Profit, and more specifically a cash profit. It sounds obvious today; however, during uncertain economic cycles the old rules are push aside for new rules. But of course, when the time is right the old rules return to with a vengeance. However, the old rules are always good enough of the successful companies. Opportunistic organizations exist (only) to make profit (value) for the owners. This is the role they have been given by their owners. This is an important point. The business, as legal entity, has some legal responsibilities depending on the country in which it is organized. In most countries, primary among the responsibilities is to do what the owners want assuming it is legal and follows the appropriate guidelines. This means that each firm should do what their specific owners require. I work under the premise that owners what to create value or wealth. If your owners are not interested in that, perhaps you should stop reading this blog.

This single-minded focus of some successful organization may seem cold, calculated, and even ruthless to some, but that is why the firm exists. It is not a charity. However, if you decide to run your business opportunistically at end of the day you will have more than enough money to give to charity or anybody else.

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