Making a profit in a new business?

Question

Is it true that when you start your own business, it is unlikely that you will make a profit in your first year.

Would it be wise to 'expand' your business when you have only been trading for a 6 months and not even so much as breaking even !!

Answer 1

Some businesses need time to start generating money. However the fastest money generator is retail, food, and consultancy businesses. Sure if you are in a type of commercial business you need time to be known in the market, formulate a good clientele base and then move forward to generate money.

Usually we do not advise to expand and /or diversify starting business before it establishes a good and strong base. Other wise you should have a big capital to rely upon.  

Answer 2

You have to let the market dictate.  Too many people, myself included, try to make a business out of what THEY enjoy doing or are good at.

Answer 3

It depends on your business and also on how you conduct your business.

I do not expect to make a large profit early on in what i am doing as I am not putting into as much as I would need to do so.

If you have a lot of overhead and product stocked you will take a longer time than I will as I do not carry any inventory and I am building my business very slowly and successfully!

Good Luck

I wish you the best in your business ventures !

Answer 4

It's likely you won't see a profit for five years, actually.

Answer 5

A lot of businesses dont expect to recover their intitial outlay and make a profit for at least the first 2 years.  However this will depend on the company you have setup, and your initial outlay.  If you are thinking of expanding it would be a good idea to draw up, a second business plan and look at what costs you will incure for expansion and what potentional profits you could make.  A good idea to look at different options to find a cheaper alternatives for expansion.  Expanding has its advantages and disadvantages, sometimes expanding a company is necessary to keep up with demand for product or service but expansion for a new company can puts increased risks for the comapny.  

Answer 6

All I can say to you on an honest basis is that some of these online opportunities are proven to be scams that is very true therefore it is about researching to see what is genuine and what is not however some people think that online businesses are get rich quick schemes which they are not they take alot of work just like any business however the rewards for that work will be good. I have been a personal development and success coach for 5 years not and the most genuine opportunity I have found is a 3 1/2 year old company.

http://www.coachofsuccess.com