Passive profits?

There are several ways to profit out of your business and every day activities. As business men we are focusing on profiting by providing good margin products and services through well organized sales channels. Products and services that follow the “value for money” and “value addition” rules. Correct! Basic marketing and sales principles are here because wise people studied the market and declared them in order to make our life (and work) easier. But this is only “one side of the coin”. The definition of profit is gain. Profit can be either active or passive. What I previously mentioned goes under the “Active profit” label. On the other hand, the “Passive Profit” is the gain from resource management. Resources in a business environment can be: Time, Assets, Personnel, Infrastructure, etc. In order to keep a company really profitable, balance between “Active” and “Passive” must be maintained. There are many cases where companies with remarkable active profitability, were destroyed because of lousy asset management or personnel overuse. The passive profitability can be easily tracked and watched by use of the correct tools. HR software, Asset Tracking software, Outsourcing, CRM software and ERP’s are a few of the tools a company should always invest on in order to keep costs low and manageable. The company size should not be an excuse, because bad results can always overcome the corporate numbers. The other investment is “the right people”. The right people can really forward your business, can teach you how to use the tools and closely watch the process and the progress. As a conclusion, I suggest you to consider all the aspects concerning your business. Measure, judge, test and finally result. But above all, maintain balance!