Why is it important for a business to make a profit?

Profit is one of the most important business goals. It is the motivation of profit that drives many people towards starting out in business in the first place.

If you have invested a large sum of capital into starting up a business you are going to want to see a return on this at some stage.

If you wish to expand your business in the future reinvesting profits is one way of financing it.

Unless a business can make profits, it is likely to close down due to a lack of funds.