L3 Making a Profit
Completion requirements
Unit F: Finance
Making a Profit
Businesses can be classified as profit or non-profit. Non-profit organizations offer a social service to their clients without expecting to be paid for the service provided. Many charities, such as animal rescue organizations, operate using a non-profit
model.
Some businesses are for-profit and non-profit at the same time. For example, TOMS shoes is a for-profit charity providing footwear for children in developing countries. It doesn't seek donations of money for shoes, but for each pair of shoes sold, a
similar pair of shoes is given to a child in a developing country.
Blake Mycoskie, the founder of TOMS shoes, was inspired to help children around the world have shoes to protect their health. To start the business, he had to calculate the start-up costs, operational expenses, and potential revenue from sales to determine if the business was feasible.
Blake Mycoskie, the founder of TOMS shoes, was inspired to help children around the world have shoes to protect their health. To start the business, he had to calculate the start-up costs, operational expenses, and potential revenue from sales to determine if the business was feasible.