Why dose it take so long to turn a profit in a small business.?

Question

Why dose it take so long to turn a profit in a small business. I have heard that it takes up to 12 months is this true?.

Answer 1

yes it is true as businesses have to pay for the rent, utilities, employees, inventory, insurance, supplies and a whole lot more.

Answer 2

If you're asking this question, and I don't mean to be harsh, but I would really consider whether going into business for yourself is the right answer. Before you do, put together a business plan. Before I started my first business I thought this was a waste of time. Then for the next 2 businesses I did and it made all of the difference in the world! When you have to think about all of your costs for marketing, production of services/materials, any contractors/employees, and other overhead, you realize what it will take to make a profit. As you put together a budget for the next 2 years, it becomes clear. You will see if you have what it takes to succeed and if you can truly be profitable in your business. And remember, every business requires that you spend a significant amount of money before you make money. Otherwise, you don't really have a marketable skill or product. If it didn't cost anything or there weren't some barriers to entry, then more people would be in that field. Best of luck in making the right choice!

Answer 3

It depends on the business and your cash flow position. Some companies seem to be profitable from the beginning. Others take a while to build them to a point of profitability. It is difficult to put a specific time to profitability on any specific business. There are simply too many variables.

Answer 4

Longer when you don't know how to spell.

For everyone it is different. Depends on overhead and advertising budget as well as your talent for bringing in money.

A service business, you start making money with your first client. A retail store will be the longest. Business to business is faster.

It really depends a lot on what it takes to get a client.

Answer 5

Small employer vendors pay their taxes as earnings (S-corp), yet maximum individuals do not comprehend that and demonize the revenue yet use the time period "small employer" at the same time as discussing jobs. it really is a comic book tale how uneducated actually everyone looks and how the politicians use that lack of know-the thanks to their benefit. ny state takes my intense taxes and hands them to Geico. My competitor. yet the Liberals are superb with that type of company welfare because Democrats call it "monetary progression" and the Democrats continually say they "help small employer." you could obviously see how. RIVER IS the appropriate celebration OF RHETORIC AND LIES. THE guidelines prepare TO actually everyone AND FOR some reason they imagine employer earnings IS diverse THAN own earnings. no longer to THE IRS. he's an similar type of VOTER WHO would not comprehend THAT THE LIBERALS (ny) FUND a wide insurance employer WHICH will pay decrease WAGES THAN A SMALLER employer. they're utilizing YOUR WAGES DOWN AND TELLING you the way EVIL insurance organizations ARE.