Hacker News new | past | comments | ask | show | jobs | submit login

Money used for business expenses like salary is not profit. Profit is (roughly speaking) what's left over after you deduct all your business expenses from your revenue.



And if you don't take a salary that money becomes profit, so the profit is effectively used for salaries. Claiming my company is not profit-driven because I use 100% of the surplus revenue for my salary is of course nonsense.


Were your company (partially or wholly) owned by capital, there would almost certainly be different decisions made (in many different areas) because of capital's desire for a return on its investment. If you were lucky, capital would be interested only in long term value (i.e. eventually selling it, and making a profit on the stock at that time). If you were unlucky, all the short term decisions would be made with an eye to generating profit that can be returned to the shareholders as dividends. Either way, that scenario would be a "for-profit" company.

As it is, your company (like mine) is just trying to generate as much revenue as it can within whatever other parameters matter to you.

What would you call the difference between a capital-dividends-driven organization and one that only cares about actual revenue?




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: