Sustained Profitability

What is Sustained Profitability?

Sustained profitability involves consistently generating profits, often through efficient growth, cost reduction, and focusing on long-term value creation, rather than just short-term gains

Most business owners and corporate executives dedicate a great sum of time thinking about how to make their operations profitable. Obviously, this is an impressive goal, but it misses an important component. Any company can be profitable today and in the red tomorrow. Here's a list of companies that were once highly profitable but are now defunct or significantly diminished: Blockbuster, Kodak, Polaroid, Pan Am, Borders, and Toys R Us. Do you remember them?

The point is that profitability today is not enough. A business operation must be sustainably profitable to provide some assurance that the profits will continue to accrue tomorrow.

Thus, the question that surfaces is how do we create Sustainable Profitability? Consider that every result that is generated in a business setting starts with an executive or owner action. These include activities like expanding the number of locations, hiring additional resources, buying and implementing new technological systems, delegating decision making control, and more.  

Along with action, there are a myriad of constraints. However, business owners and corporate management only have full control over what happens inside the organization.

Knowing this, a business can begin looking at what is possible to achieve within the current range of operations.

Business operations rely on a plethora of rules typically known as policies and procedures. Those rules are constructed by business owners and executive management to guide employees in delivering results to the expected outcomes. Nonetheless, the rules that guide business owners and executive management in the pursuit of profitability are more abstract and tenuous, especially when concerned with producing sustainable profitability.

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