2021.09.21 / About
Our financial goal is mainly based on “maximizing gross profit” to keep the business running.
Maximize Gross Profit
We have never considered going public as our business goal, nor will we seek business expansion. Instead, we believe that it is better to increase gross profit as much as possible, even if the scale is smaller.
If revenue maximization is the ultimate goal in the profit and loss statement, we will most likely underestimate prices and profit. If profit maximization is the top objective in the profit and loss statement, we will most likely have thought of reducing fixed costs. Our business relies on talent to make a gross profit, so there are not many variable costs. “How much gross profit we make with certain fixed costs” is our most important indicator. Employment is done in a planned manner. First, the required fixed cost is calculated followed by “fixed cost + target profit = minimum gross profit” so that the gross profit margin can be attributed to the revenue to be achieved. Therefore, the target plan can be easily prepared if “maximizing gross profit” is set as the target.
The goal (plan) is the “desired result.” We are all in the same storm, as enormous challenges are not uncommon in our industry. Therefore, it is important to “navigate properly” and “judge accurately.” Usually, there are obstacles and difficulties along the way to achieve the plan, but if we can act on the plan, even if the plans do not work out, as long as gross profit is the benchmark, it will lead us to “what we should do based on the current situation.”
For TS Cloud, it is important to examine the gap between the plan and the actual figures