Financial Planning, Budgeting, and Forecasting: Financial Intelligence Collection (7 Books)

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Profit Is an Estimate

In a familiar phrase generally attributed to Peter Drucker, profit is the sovereign criterion of the enterprise. The use of the word sovereign is right on the money. A profitable company charts its own course. Its managers can run it the way they wish to. When a company stops being profitable, other people begin to poke their noses into the business. Profitability is also how you as a manager are likely to be judged. Are you contributing to the company’s profitability or detracting from it? Are you figuring out ways to increase profitability every day, or are you just doing your job and hoping everything will work out? ...