What length of time should it take for a new company to start having profits? Generally speaking of course.
2007-03-31 21:23:55 · 3 answers · asked by Brian P 2 in Business & Finance ➔ Small Business
Generally speaking new company`s are usually given a year to project profits?
Q.Who gives them the time limit:
A.The Lender
Usually when a person writes a buisness plan he submits a projected financial analysis for the first three years. It is common and acceptable that in his first year his is at a loss (though minor of course.) This is accept because his buisness is still growing and he is at an automatic - when starting his buisness because of start up cost.
Lenders/Investors- Expect to see a return on their investment after the first year.
2007-03-31 21:46:12 · answer #1 · answered by Future 5 · 0⤊ 0⤋
There are far too many factors to make a general statement. For very large manufacturing operations, it can take 3 years to be profitable. For small service (consulting or accounting companies), you're ususlly profitable with the first job.
2007-04-01 00:24:15 · answer #2 · answered by jdkilp 7 · 0⤊ 0⤋
For our business, we can have a profit for about 2 or 3 months after we start the business. So you must have the profit abaut min 10 % /months.
2007-03-31 22:18:27 · answer #3 · answered by riva n 1 · 0⤊ 0⤋