Profit expectationQuestion What kind of profits can I expect for my new business?
Answer This is an impossible question to answer. So much depends on many different factors.
Profitability for your start-up will depend on how much revenue you can produce, how efficiently you can run your business and how well you can manage expenses. Most start-ups struggle to bring in their first sale, and build a stream of sales quickly enough to offset expenses. It can take years (3-4 on average) for businesses to reach the break-even point. The U.S. Small Business Administration, your industry trade associations, as well as financial organizations do have profitability data broken down by industry and organization size. Look up your type of business to see what the industry averages are. A well-written and realistic business plan can help you learn how to estimate your break-even point and prospects for profitability.
Brain Trust contributor:
Author of Instant Profits: Making Your Business Pay
Related Categories: Accounting, Finance, Taxes, Business Planning, Business Start Up, Cash Managment, Management
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