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Profitable business


In a free market, a profitable product is one that participates without distortions —grants, government subsidies, political favors, donations — and creates superior value compared to other accessible alternatives while consuming fewer resources.

  • It is good for customers because the product is better (superior value) and possibly cheaper (consumes fewer resources).
  • It is good for business because such products create surplus (profit or time or raw materials), which can then be reinvested or used somewhere else.

Both are required because we operate in the free market and hence cannot force any stakeholder — employees, suppliers, or customers — to work with us. They’ve to voluntarily choose us.


Footnotes

  • From Charles Koch’s book, Good Profit.
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