How much time does a new small business need?
- Thread starter moneybaker
- Start date
J
Jet Virtual
Sorry but I can't believe people are actually answering a question that NOBODY except the OP can understand!
It's as vague as when a women asks a man how his day was ...
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S
S-Marketing
What kind of small business would need to trade for three years before making a profit and having a decent customer base? A very poorly planned one?
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- Original Poster
- #11
Sorry but I can't believe people are actually answering a question that NOBODY except the OP can understand!
It's as vague as when a women asks a man how his day was ...
My question is directed at those who have done it
. So it can not be as vague as you have put it.Kind Regards
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J
Jet Virtual
My question is directed at those who have done it
Kind Regards
Not that i need to respond but been there done that but haven't bought the Tshirt
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S
SqueakyHinge
Small businesses are unlikely to make a profit in the first month
It all depends on the definition of small business and whether it is service based or product based. I could understand a product based business taking a couple of years until the mega bucks start rolling in but the average small mom and pop business shouldn't take anywhere near 3 years to make a profit unless the people running it are retards.
It all depends on the definition of small business and whether it is service based or product based. I could understand a product based business taking a couple of years until the mega bucks start rolling in but the average small mom and pop business shouldn't take anywhere near 3 years to make a profit unless the people running it are retards.
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All depends on the type of business, startup costs, how many customers it had on day one and lots of other stuff.
But personally I would say -
1. 6 months
2. 12 months
3. That should happen from day one onwards.
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Lots of small business can make a profit on their first day of trading. Lots of small businesses can take weeks, months or years to turn a profit. It depends on the business.
For example, you can rent a market stall for a day. First thing in the morning on day one, you go to the wholesalers and get a trolley full of goods. Drive it to the market. Assuming you've picked the right products, the right market and are selling at the right price, it would be very difficult not to turn a profit on your first day. (However, if you needed to buy a van to move your goods, that's a different matter!)
It's not really helpful to make sweeping statements as to timescales when a business moves into profits. It gives people the wrong sense of security if they're still loss making after 2 years but are led to believe that's normal when it's the type of business that should easily be profitable after 3 months!
What matters more, is the direction of travel, i.e. are customer numbers increasing, are sales values increasing, are profit margins healthy, are costs under control. With that kind of information, you can extrapolate the next couple of years to see when and if you will turn into profits, and then you can make an informed decision as to whether to wait it out or give up or change direction.
For example, you can rent a market stall for a day. First thing in the morning on day one, you go to the wholesalers and get a trolley full of goods. Drive it to the market. Assuming you've picked the right products, the right market and are selling at the right price, it would be very difficult not to turn a profit on your first day. (However, if you needed to buy a van to move your goods, that's a different matter!)
It's not really helpful to make sweeping statements as to timescales when a business moves into profits. It gives people the wrong sense of security if they're still loss making after 2 years but are led to believe that's normal when it's the type of business that should easily be profitable after 3 months!
What matters more, is the direction of travel, i.e. are customer numbers increasing, are sales values increasing, are profit margins healthy, are costs under control. With that kind of information, you can extrapolate the next couple of years to see when and if you will turn into profits, and then you can make an informed decision as to whether to wait it out or give up or change direction.
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I'm one. When I set up my PR agency we had three clients from the start and part billed in advance. Operated from home and received a grant which covered start up costs so in profit from day one.
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A colleague of mine works on a high tech development project company which has been completely funded by grants ( and occassionally he works for months before being paid!) and it has been going about 3 years with no end product yet. Employs between 1 and 4 people as work demands.
Yet because of the development and its projected value and flexibility the company has been valued well into the millions.
Yet because of the development and its projected value and flexibility the company has been valued well into the millions.
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S
S-Marketing
We are talking about small businesses. The kind of businesses who frequent this forum. I made a point of saying tech startups and those requiring r & d will take longer.
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S
SqueakyHinge
Do you make a profit in your first day
which is what was suggested by the guy i quoted.
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Do you make a profit in your first day
I started my business 16 years ago BECAUSE I had an order that I could make a profit from if I chose to crack on and do it.
Now admittedly that isnt the case for everyone but OP if it hasnt been asked before, what business are you in?
Then I could answer your question properly.
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S
SqueakyHinge
Interesting. I am surprised he divulged his way to earn. Obviously isnt scared of competition.
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A
Anastasiya
Growing a business is a constant process of experimenting to see what works, throwing out what doesn't work, and doing a lot more of what does work, over and over again. If you stay at this process long enough you will succeed. If you're not able to keep at it long enough you fail. It depends on many conditions, but in general many need 1-3 year I suppose. Here are some obstacles that can hinder your success http://www.businessknowhow.com/startup/business-failure.htm
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