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Now are are in the 6th month of the business! The business income can only pays for the overhead cost (Salary, Maintenances, Inventory and all) Nothing left to count as profit after the payments! Are we on the right track?

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It is not uncommon for a startup business to run at a break even or a loss financial position during the first year of business mainly due to the one time, nonrecurring nature of front end loaded expenses to establish the enterprise (capital equipment, web site, inventory, recruiting and similar essentials.)

The key to achieving a profit is to stabilize recurring expenses and increase sales to more than offset them with strong marketing and excellence in customer services and product delivery.

Report Kenneth's answer

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Since you are covering the costs, lets assume that you are in the right track. What you need to focus on your operating profit percentage margin and if you focus on increasing the same, you will find the answer on how make profits.

Also check the costs centers where you can reduce or eliminate. Offer fixed and variable salaries (performance based).

I do not know at this stage, what is your business model - but the above will help you gain insights to work on it w.r.t. profit making.

Report Rahul's answer

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