Hi Adam!

I totally agree that profit isn't the only motive, nor should it be. But I think "profitability" is a vitally important metric of success.

By that, I mean, knowing whether each aspect of what you're doing as a business venture is a net source of profit, or a net loss.

It's often a great idea for businesses to participate in activities that lose money, but they should know what those money-losing areas are, and be able to determine whether they're bringing in enough revenue from profitable aspects of their business to offset those losses.

All I'm suggesting is that business managers should always understand how their businesses work -- what's driving their success.

For instance, in magazine publishing, I know that (usually) editorial, production and admin departments are usually cost centres. Advertising is usually a profit centre. And circulation may or may not make money (depending on other factors).

I think if we spend a dollar, we should know whether it's generated revenues of $0, $0.50, $1.00 or $1.50. If we don't, we're not really managing the business aspects of our operation. We're just having fun.

(I do like having fun, by the way. [grin] Even if I don't sound like a particularly fun guy in these comments!)

-- Jon