Did you lose money your first year?

How long did it take to become profitable? (30 000 net profit)

Really appreciate your input

It took me less then 6 months to be making 30k per year. I was profitable though after my 1st 30 days.

The time necessary for a business to turn a profit has many different variables, and the achievement of a $30K NET profit would certainly depend on the type of business that you operate.

Market fluctuations, the state of the local & national economies, competition, capital investment, working capital, expertise, and many other factors, will all have an affect how quickly a business can be brought to fruition.

I've owned and operated retail stores, distribution businesses, e-stores, and more. The time it took each business to turn a profit was vastly different. Some of my businesses took off, while other never made a profit at all.

After much trial and tribulation the secret that I have learned is to trust my business instincts to know when to hold-em' and when to fold-em'. I've certainly stayed in a failing business too long, and I have also given-up on great business ideas without providing them with the effort and work that would have made them great successes.

If you are wondering when your profits will start to come, the best thing to do is step back and analyze why they haven't already arrived. Have you exhausted your avenues of marketing? Perhaps an additional capital injection from a venture capitalist or bank would help to get your business over the "red-hump" and into the black.

Thank you Shaun and Jack. I appreciate the responses. I havent technically started my business yet, but I am just planning ahead and trying to set realistic and conservative goals.

More feedback please from everybody!

It really depends on the business you are starting, whether or not you are experienced in that business, and most important: TIMING. I made $114,000 my first year, but that's after 16 years in the business. On the other hand, my brother in law did not fair nearly so well running a couple of franchise sandwich shops - but then, that was not his business before hand either. I have a friend who has a business as a concierge - don't know how well he's doing, but it's not full time, and it is also not what he's been doing for the last 20 years. The best money is in what you're already doing, provided you do it well, have the contacts, and a crucial support system (like a key client that is basically your benefactor).

Thanks the business i am starting is related to my work. I only have a couple of years experience but i figure its best to gain further experience out in the field as opposed to working for someone.

more feedback people! thanks!

it took us about 5 yrs to make that much.....what really helped us was a huge gush of inventory...we had to borrow to make the buy but after that our numbers stayed up....i guess we were a bigger company after that....
we lived cheap for the first years, but still paid all our bills....

I agree with jacklang, the amount of time it takes for your startup to become profitable depends on several different variables. However, statistically, the average American/Canadian business takes approximately 3 years to break even.

My advice: don't try to make a profit in your first year or else you run the risk of overpricing your product/service.

Adding to my above information, my business is a service business, and there is no cost of inventory, and I was able to get going on a shoestring plus I had a benefactor. These are SIGNIFICANT factors: if I had tried this 10 years ago, those factors would not have been available, and I would have failed miserably.

It usually takes most small businesses 3 to 5 years to really start making a profit . Alot can't hold out that long - but if you do then you should be established by then . I work in a small family owned business offline and we have been struggling along , with the economey down here it is not easy . Try to save as much money as you can - the best advice I could give you would be that word of mouth is the best form of advertisement . Get your name out there - and get people saying positive things about what you do . Good luck to you !