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Distinction between for-profit and not for profit business

I just need to understand the difference.

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In a word, the difference is profits, but the real difference is the approach to the structuring of the organization.

A for-profit business begins with sales. Even before a company is in business, the focus of the planning stage is sales: what is the market, who are the players, what is the competition, what is the gross margin, what is the pricing strategy, where will the products be sold, what will be the range of price, and many other similar questions.

A business plan will not get off the ground without a sales strategy. Once the strategy is discussed, then come the decisions about business form, product availability, personnel, capital structure, lenders, and pro-forma statements, to name a few.

In a for-profit business, the focus is with revenues and the ...

Solution Summary

The 482 word solution clearly defines the differences between for profit and not for profit. Included is the approach, the goals, the budgets and how to accomplish objectives. As an example, there are two cited mission statements quoted in the solution to demonstrate the vast difference in for profit and not for profit.