True Profit!: No Company Ever Went Broke Turning a Profit

by Hermann Simon

Real profit after taxes is the most important management target. Profits are the cost of survival and the creators of new value. In this book, celebrated management thinker Hermann Simon brings clarity to the jungle of profit concepts and balance sheets. He sheds light on the performance of numerous companies and industries in international comparison and looks at the key profit price, sales and costs. Hermann Simon derives practical consequences from his astute analysis and offers a convincing guide to profit-oriented and sustainable corporate management! The book pleads for a reconsideration of profit as the guiding concept of management and entrepreneurship, and it showcases how profitability can ensure the long term health of a business. Questioning the fact/dilemma, why more than 80 percent of companies in the US are going public have never turned a profit, this book is invaluable inspiration and a powerful guide for responsible and resilient managers and entrepreneurs.

Genres: Business

220 pages, Paperback

Published July 18, 2021

Reviews

[applekern · Rating 3 out of 5]

This took me forever to read, as it is so unbelievably inaccessible for someone without an already well-developed finance background.

It did get a bit easier after surviving the first 2 chapters, though overall I am still questioning who the target group for this book is. It seems to me that to understand and follow the terminology and quick-witted statements made by the author, you‘d have to already possess the knowledge prior to reading - which begs the question as to what this book brings to the table then. I‘d have liked for it to be longer and thus take more time to explain concepts and re-explain them when you encounter them again later in the book. As a consultant, I‘m sure the author knows how many times you need to hammer the message until it truly sticks.

Overall I was able to pull some interesting insights on pricing, volumes & cost effects on profit - however I might need to get another degree first before I can revisit the book and get more out of it!

[Ronald J. · Rating 5 out of 5]

I thoroughly enjoyed this book. I applaud Hermann Simon for taking on a controversial topic and doing it justice, not easy in today's woke world. Peter Drucker said that profit was the price we pay for tomorrow. Simonn writes that profit is the opposite of waste. Most companies don't make an economic profit (i.e., cover the opportunity cost of their capital), and those that do often make much less than is perceived by the public. Why? Take a look at our media and education for its lack of understanding of basic economics. There's a tremendous amount of good advice, examples, and concepts in this book. I would have just added one more definition to all the ones Simon cites for profit, from George Gilder: Profit is the index of a firm's altruism. Enterprise is outward focused, other-directed, and profit indicates you are serving the needs of others well. Excellent read.

[Monique Buch · Rating 3 out of 5]

The book highlights well the importance of profit and how to draw attention to it and its drivers. As well as the chapter on price is interesting.
However it could have taken less pages to convey the essentials and the chapter on cost is relative high level.

[Murat Atesok · Rating 4 out of 5]

It has many information about real profits and pricing. It can be very useful. I recommend it.