Profit = reward for risk
What’s profit all about? Per Merriam-Webster, profit has five definitions, one of which is the compensation accruing to entrepreneurs for the assumption of risk in business enterprise as distinguished from wages or rent. This definition is important to grasp and apply. In short, profit is reward for risk. Business owners are reminded daily there are no guarantees, and that every transaction, customer, employee, supplier, relationship, etc. has risks. We only take these risks