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How does non-profit organisation work?
(lemmy.ml)
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this post was submitted on 01 Jan 2024
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Damn. So, we've been lied to all these time that business owners need profits to sustain their business. How did they even hide this basic knowledge from a large percentage of the population?
decades or centuries of
Technically, what’s needed to sustain the business is cash flow; enough cash at the end of the pay period to compensate your employees and vendors.
A lot of R&D businesses and startups don’t make any profit, but they continue operations through loans, in the hopes they discover their niche.
It’s not really a lie, because in capitalism, profit is mandatory for your business to be sustainable. Non-profits still have to make a gross profit when it’s all said and done. It’s just that they don’t retain a net profit.