How Long Does It Take To See a Profit?

[Bayou Twin Mom]

We have some great businesses our group and I would love to learn a couple of things...

1. How did you fund your business to get started?
2. How long did it take to break even?
3. At what point do you feel or did you begin seeing a profit?
4. At what point do you decide you can't put anymore into it, and you look for investors or sell your business?

[Mary]

1. My biz was (& still is) funded by my other business (graphic design, started in 1985).
2. Still waiting, after 2+ years.
3. Still waiting to see a profit... but honesty not watching very closely.
4. Toughest question here... I believe you need to listen to yourself for this. We all start businesses because we believe we have something worth sharing with others. Sometimes we're right, sometimes we're not. It's not that our idea is bad or wrong, but the marketplace is HUGE and finding the right buyer at the right moment takes time & lots of patience, along with tons of perseverance. Follow instincts and leads until they don't feel right, then try something new and follow that.

Personally I'm giving 'it' another full year before I will decide if what I'm attempting to put into the marketplace is a good idea, but just not good enough. If that's the case, I will sell off the items individually and know that I put a good effort forward. I did not set up my biz to accommodate outside investors, and never thought much about selling it either. This year (which for me began in June) I'm focusing on print ads and most likely a booth at a local trade show in the Fall. I've got my fingers crossed & my thoughts positive. Wish me luck. And... good luck to you too!!!

[Bayou Twin Mom]

Thanks, Mary. I can always count on a great informative response from you. I have felt a little defeated this week and just looking to see what others use to measure their businesses success and factors used as to when to pull the plug.

I'm with you, I created my business to help others, not so much for the financial reward. Of course, the resources are needed to keep going. I have a meeting with a local S.C.O.R.E. councilor on Thursday. Its a free service, so I thought it couldn't hurt.

Look forward to hearing what others have to say...

[Stacey]

The first two years I was in business I was happy if I broke even. I did it for the passion of it and I just prefered not to be upside down. I would say I actually started showing profits after the 2nd year. Now last year was probably one of the smallest profits but I moved and I couldn't multi task moving so far away from home and running a business - so it did hurt business - but I fully expected that. Now I am starting to recover and really going full force with things. Now lets hope it will be a good year. But the bad things it I would continue doing this forever even if I just broke even - because I LOVE it!! I can't imagine my life without it.

[Kim]

I have been in business 4 years now...it took 1 year to be profitable. I broke even during the first year. But profittable to one person is not worth the effort to another. I design and sell clothing on etsy (originally on ebay) . Since I sell custom orders (I make them after being paid and getting measurements) I do not have to have much inventory...just some fabric. The overhead is minimal. If you look at my wages hourly most people would probably put it in the 'not worth it' category.

My goals weren't to make large profits but make enough to pay for fabric and a new sewing machine now and then. Besides it gives me a good excuse to sew for my daughter. I do well enough now that I use the money to have someone clean my house weekly, freeing up time to sew more and therefore make more.

Your last question is hard. Since my business is something I do anyway (sew for family) and it is cheaper than buying designer clothing and listing on etsy is very inexpensive I don't think I would quit even if I didn't make a profit.

[Jennifer Tankersley]

One thing is for certain, having your own business is a ROLLERCOASTER! One week I'll be flying high, thinking I'm a genius and the very next week I'll be moody and depressed and wondering why I ever did something so stupid. I am not sure if it ever gets better. You just have to love what you do and know that there may be some side effects.