20. The Law of Purpose

The purpose of a business is to create and keep a customer.

Many people think that the purpose of a business is to make a profit. However, while that may be the purpose of the individual who starts or invests in the business, a business is really a separate entity that has a purpose of its own. In fact, a good way to assess the purpose for the existence of a business is to imagine that the owners of the business had to appear in front of a tribunal each year and justify getting permission for the business to carry on. You will see immediately that “making a profit” would not be enough of a reason for the enterprise to justify its continued existence.

The first corollary of the Law of Purpose is Profits are a measure ...

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