How do you survive starting a new business. When do you see profit?

Answer 1

Hard work and long hours. I helped start a new law firm from scratch a year ago and it takes a lot of effort to get things going!

There will be plenty of "ups and downs" in the first few years and times when you really wonder whether it's really worth it. But everytime a new customer walks in through that door you feel like a million bucks!

You ask when do you see a profit... this is almost impossible to answer without knowing a whole lot more about your type of business, your overheads, competition, number of employees etc. In very general terms I would say 1 to 3 years. Our law firm has just started to show profit after a year and I know that the average is 3 years.

The danger period for business failure is in the first year - of all the business failures, most occur in that crucial first 12 months.

If you want one piece of advice: If you had a Business Plan, particularly if it was OK'd by your bank or financial advisor, then stick to the plan! Things will come good in the end!

Good luck!

Answer 2

My husband and I own an electrical business. We started full time in August of 2005. You should have a small profit always; if not, then you can't get by. Please take this advice, find out all required taxes, license fees...etc before starting your business. We had no idea what we were in for. We have unemployment tax, payroll taxes, estimated taxes. I mean sure you hear about all of that in school, but you don't realize how much it can be until you have to pay it yourself. With that said, there is nothing more satisfying than owning your business. It is hard work, and you will have slow periods, but the reward will be in the long run when you can sit back and enjoy the fruits of your labor! Good Luck!

Answer 3

Starting a new Business is easy as 1 2 3, surviving a business for the next 5 years is not.

1. setup a business plan (doesnt matter if small of big)
2. follow thru with business plan, adjust when needed (trail and error stages)
3. Work Smartly not harder (yes people think working harder will make you successful, but it won't - I have 9 different businesses)
4. learn which is your hot item, expolit that into more $$$
5. be nice to people, always ask for business (carry a business card always)
6. If you have employees, learn how to delegate duties
7. be organize
8. Market your Business (people just wont come you know)

Answer 4

You must plan for success and determine when you expect to make a profit. There is no exact time period that you will see a profit. Some businesses take as long as a year to start generating a profit.

Answer 5

I'm starting a business also, and as i can see... it depends on the product you're selling and how populated is your target market, it depends entirely from what you're selling, for example, if you're selling gum, you know that your target market should be every human being that comes near your business, but, if you're selling an specialized and expensive machine that just three enterprises in america use. There's another thing, if your product is new, you will need to educate your target market to know you, and teach them how they wont live without you. How many time will it require to see profit, well, you must know these elements and program a critic route to success! farewell Entrepreneur!

Answer 6

a new business takes time to get started, to get your name known in the community,it takes patience, perseverance,talent and knowledge in what the business is all about. most of all it takes enough money to invest in the business to get it off to a good start and then while you are working so very hard day in and day out you need to keep a positive attitude. most businesses don't see a profit until about a year. hang in there i wish you lots of luck

Answer 7

first year you have to look after the business.
second year business will look after itself.
third year business will start looking after you.

Answer 8

did you not study 'cash flow' before you started your business?