Six Figures Doesn't Matter If You Have High Operating Costs


In this podcast, Cassandra examines the subject of profitability within the business marketplace.

As portraying a business in as positive a manner as possible is every business owners’ goal, sometimes these claims don’t tell the whole story. Financial figures can be embellished to push a goal or narrative in marketing the business.

What good is a $100,000/year business if your operating expenses are $95,000 before taking a profit?

Methods of breaking down expenses; might those be budgeting for a design team or pricing bulk ingredients all factor into the balance sheet. Service based businesses may have an entirely different breakdown of expenses than a product-based operation.

The common theme: time will always be your most precious commodity. Sometimes, business strategy dictates losing money to enhance the likelihood of landing more generous accounts. Samples of a product might be sold at cost or slightly below cost in order to attract clients who will eventually purchase a fully priced product.

Often the question needing addressing is whether a business owner can sustain a short term or long term loss when trying to meet their goals. Being a new business owner requires a degree of adaptability to ensure the evolution, survival and eventual success of the business is in line with their vision.