Wahid’s measure – the influential and evaluated of similarity
WAHID’S MEASURE – THE INFLUENTIAL AND EVALUATED OF SIMILARITY
BETWEEN PROFIT & NON- PROFIT BUSINESS PLANNING
Summary, Wahid’s measure explained the similarity & non-conformity between profit &
non- profit business planning, I hope this article “WAHID MEASURE “will helpful for
students, readers and learners, this article they will easily understand about the similarity and
non-conformity between the profits & non- profits business planning,
In this article I have presented what is the meaning of profit and how it is obtained. What is
business planning the easiest way to elucidate profit & non- profit business planning, The
point is that the profits of a non-profit organization always go toward supporting some cause
that society deems as good and beneficial and not into the pockets of the investors.
Author Announcement: A lot of analyst and authors has described about the similarity &
non- conformity between profit and non- profit business paneling, although they explained
very well but sometimes it’s really difficult to understand for the learners clearly. I had an
awful experience when I was a learner. Now, as a financial analyst I felt to write this matter in
a very and easy way so that the learners/professionals don’t have to go door to door to
Introduction: profit and non-profit businesses planning are similar in many ways. Both are
generally businesses in which properties are held and business transacted in the name of the
business rather than the persons involved. To carry on and rise, both need to generate or bring
in more profits than they spend on procedures. Both are involved in producing a good or
service for people. And, of course, both are managed and run by the people who are employed
by the business.
Business review explained the organization, business project or product, reviewing its
purpose, management, operations, marketing and finances. Every category of business plan
requires analysis, careful assessment of all known factors, and analytical potential results of
special options that are open to the company
Meaning of Profit Company:
It is obvious that every business function in order to earn profit. In most cases the main
ambition of a business is making profit. A business may have other ambitions but if they do
not earn profit in the business then they will have to end the business.
In this article I have presented what is the meaning of profit and how it is obtained. What is
business profit? The easiest way to elucidate profit is the income a company earned in a
certain period of time. There are two types of profit specifically gross profit and net profit.
Gross profit is not the actual profit of a business and it is found by deducting the cost of
goods sold from net sales. Thus, net profit is considered as the actual profit retained by a
business and it is actually the variation among the revenue earned by the company and the
Profit margin is very useful when comparing companies in similar industries profit calculated
as net income divided by revenues, or net profits divided by sales. It measures how much out
of every sale a company actually keeps in earnings.
Meaning of non-profit company?
Operated as nearly as possible at cost; an organization not seeking profit and which does not
disgorge excess income to its members, in the form of dividends or otherwise Operated as
nearly as possible at cost; an organization not seeking profit and which does not disgorge
income in excess of expenses to its members, in the form of dividends or otherwise.
Definition: A non-profit organization is one that has committed legally not to distribute any
net earnings (profits) to individuals with control over it such as members, officers, directors,
or trustees. It may pay them for services rendered and goods provided.
Why Do a Business Plan?
Business planning is an efficient and official advance to accomplishing the planning,
coordinating, and control responsibilities of management. It involves the growth and purpose
of: long-range objectives for the project; Business plans become visible in many special
formats, depending on the consultation for the plan and difficulty of the business. However,
most business plans a business plan is often prepared when:
1. Opening a new organization, business venture, or product (service) or
2. Growing, acquiring or improving any of the above.
There are numerous benefits of doing a business plan, including:
1. To identify a problem in your plans before you implement those plans.
2. To get the commitment and participation of those who will implement the plans, this leads
to better results.
3. To set up a roadmap to compare results as the venture proceeds from paper to reality.
4. To accomplish greater profitability in your organization, products and services all with less
5. To achieve financing from investors and financer.
For these reasons, the planning process often is as useful as the business plan document itself
Profit and non-profit businesses are similar in many ways. There are many similarities against
Non-profits and profit businesses. The similarities are largely attributed to organizational
vision, strategic planning, and mission statement and to efficiently run those processes which
help support these philosophies. That is explained following
Non-profit and profit businesses are worlds distant in many of their characteristics. This is
primarily due to the core ambitions and the ideology established to meet these ambitions. For
profit businesses have a responsibility to give their shareholders a beneficial return while
nonprofits' responsibility is naturally fixed in shared growth.
Nonprofit businesses silent have expenses and operating costs to meet so they can carry on to
operate and accomplish their mission. They also have individuals and businesses to respond
to and express how they are successfully operating. This is a strong similarity against Non-
profits and profits.
These steps and measures involve the progress of a strategic marketing and a management
plan to get their name out with the goal of bringing higher identification and wakefulness to
their respective projects. Commercialized for profits are forceful in their attempts to increase
recognition, but nonprofits these days are also increasing their efforts to become generally
accepted. Both types of businesses use several of the same tools and methodologies to gain
wakefulness and draw notice
A non-profit business is similar to a profit in the background that they both are created to
fulfill the need of a specific position in the marketplace for a community of public. When
anyone starts a business, the first step is to make sure that there is a need for that company to
be created. If there is no need there will be no clients, and therefore the company will fail. A
nonprofit is very similar. If you are looking to start a non-profit business then there must be
some kind of a need for the direct service that you are going to propose.
At a glance
1. There are many similarities against for-profit and non-profit organizations. First and
principal, both categories of organizations start with a solid mission report and a vision report
that take the strategic planning procedure,
2. A nonprofit has ambitions other than raising profits for anyone related with it. They are
established to benefit a public or private good of some kind during its behaviors, other than
simply appropriate a money making activity.
3. Having worked for together non-profit organizations and for-profit business, I judge they
are likeness in three ways. They together provide the wants of a role in the marketplace, work
to make a difference in that role, and get paid
The overall evaluation of how a non-profit business is similar to a profit company is that they
both are going to near creation change in an area of the world that it's needed, as wanting to
make a similarity, and they together get paid a lot for what they do.
A primary non-conformity between a nonprofit and a for-profit business is that a nonprofit
does not issue stock or pay dividends, and may not augment its directors. However, like for-
profit businesses, nonprofits may motionless have employees and can compensate their
directors within logical limits.
1. The major non-conformity is in the legal organization of the business. A nonprofit has a
shared management model- an Executive Director and a Board of Directors. A for-profit
belongs to the person who took the risk of setting it up
2. A nonprofit has a dissolution clause-at the end of its life-once liabilities have been satisfied,
the outstanding assets must be donated back to the public. At the end of a for-profit, the stuff
outstanding belongs belongs to the debtors/owners.
3. Nonprofits can produce profits through social activity and direct it into huge salaries,
programs, buildings, and build assets. Nonprofit does not equal poor companies, low salaries
or small organizations.
4. Non-profit organizations are not classified from earning a profit, but legislature does
impose exact policy and boundaries on them. Donors cannot receive a tax deduction for
charitable donations if an organization has not applied for excused status. No charitable
deduction can be received for personal benefits, such as life insurance, annuity, or endowment
contracts transferred to a nonprofit organization.
Bylaws are formed setting up businesses governing rules, including decision-making strategy
and selection rights. Businesses topic stock; unlike with nonprofits, voting rights go to the
shareholders of the business, not the board of directors.
5. A nonprofit organization's objective is to obtain finances either through government grants
or private foundations. Generally, the organization tries to keep a low operating cost by using
donated facilities and equipment. Employees are generally paid less, or the organization relies
on volunteers to execute day-to-day activities. Revenues generated by a nonprofit are often
less than what is actually needed to meet the organization's financial needs.
A for-profit business should produce private awareness in service to the public while pursuing
the objective of rotating a profit. Each business should have its own reason, and occasionally
that purpose may be in disagreement with people. Ecological groups like Greenpeace often
complaint and display when people's well-being is damaged by a business. Preferably a
business should be an addition of its people, and compelled to manage and elucidate its
contact on human being rights, public well-being, and the usual situation and prospect
6. Non-profit organizations usually do not operate to make profit, a attribute broadly
measured to be defining of such organizations. However, Non-profit organizations may
believe, hold, and pay out money and other things of worth. It may also officially and
decently deal at a profit. The scope to which it can create income may be embarrassed, or the
use of those profits may be limited. Non-profit organizations so classically funded by
donations from the private or public sector, and often have tax excused status. Contributions
may sometimes be tax deductible.
Some 'non-profits' are operated by paid positions. As well, Non-profit organizations may have
members or participants or beneficiary or students as opposed to customers in a for-profit
organization. One should not oversimplify about the proportional cost of a 'non-profit' verses
profit’ organization; there may be an important internalized profit in a non-profit
CONCLUSION: this article explained some similarities in how profit and non-profit
businesses are run. For example, like their business cousins, most non-profit organizations
have to face stiff struggle – but rather than for a product, they are most often competing for
funds, members, sponsors, media exposure and supporters. It is obvious that every business
function in order to earn profit. In most cases the main ambition of a business is making
profit. A business may have other ambitions but if they do not earn profit in the business then
they will have to end the business.
About The Author:
Mohammad Wahid Abdullah Khan (MBA, CPFA, CPIA, CFC)
Home Page: http://wahidbd.page4.me
MOHAMMAD WAHID ABDULLAH KHAN Dhaka, Bangladesh, is a PhD Candidate in
"Criminal Psychology" as well he is “freelance Author, online columnists, Human
psychoanalyst, industrial psychotherapist, Certified Financial Consultant, & Certified
Forensic Accountant, too dynamic entrepreneur, utilize creativity leadership and
teamwork to design and execute solutions that creates customer value.
Moreover Mr. Khan is CEO & Certified Consultant of” Wahid & co, Wak Business
Solutions, Wak Business Support, “Wam Associates” & leader of the” Wahid Consulting
Group”; Prior to consultancy Mr. Wahid has fulfilled more than 14 (fourteen) years
working in various fields of Business like - Accounts, Finance, Auditing (Internal &
External Audit), Project budgeting and Project costing related positions in some of the
largest group & join venture companies in Bangladesh. Which experience encouraged him
to work as a “professional consultant” from a few years,
Mr. Khan is realistic and implements his assignment within the bounds, objectives and
capabilities of the organization. His extraordinary quick understanding of strategic
options helps find direction and supports management in decision making. He has a “doer”
attitude and gets things done on the technical and functional side. As a “Consultant” Mr.
Wahid believe that his study & physiological motivation is very strong, as well my
confident level is high & my quantitative skills are well-built also he is crystal clear about
my every single goal which helped me to be a very tough contestant “Consultant” in the
business consultant arena
• Associate Member – Institute of Management Consultants Bangladesh (IMCB)
•Member- Association of Proposal Management Professionals® (APMP®)
• Member – The Next level Purchasing Association.
•Member- The Chartered Institute of Personnel and Development (CIPD)
• Member - The Professional Risk manager’s international Association (PRMIA)
• Affiliate Member- Global Association of Risk Professional (GARP)
• Member - The International Association of Risk and Compliance Professionals (IARCP)
• Lifetime Member - Dragon fire martial arts association “International” (DFMAA)
• Individual Member: License Logic LLC
• Associate Membership - The American Psychological Association (APA)
• Member - The Global Community of Information Professionals