Summary
Businesses exist for one primary reason: to make money for the owners. To do that, the business needs to bring in more money than it spends. The money coming into the business is mostly from the sales of products and services, whereas the money going out is for all kinds of different expenses:
Cost of goods sold
Operating expenses
Investment-related expenses
Income taxes
The amount of money left after all of the expenses have been paid, the profit margin, averages around 10% in a typical business.
Not-for profit organizations exist for a different reason: to maximize the benefit to some relevant population. But not-for-profit organizations also have limited resources.
Software is a lot more expensive than most people think it is. The total ...
Get Return on Software: Maximizing the Return on Your Software Investment now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
