How long to Profitablity?
How long to Profitablity?
(OP)
I am curious to know how long after starting your engineering businesses that you started seeing profits on a regular basis...Thanks.
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How long to Profitablity?
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RE: How long to Profitablity?
My business was profitable almost immediately--but I was earning near half of what I earned at the job with which I was formerly employed. My expenses were very low until I was able to make bigger purchases (computer, software, etc.), so I tried to grow as fast as business would bear.
Jeff Mowry
www.industrialdesignhaus.com
Reason trumps all. And awe transcends reason.
RE: How long to Profitablity?
-b
RE: How long to Profitablity?
If you rent office space, hire a secretary or cad person, etc. you probably won't see a profit for a while.
I guess I would have phrased the question as "(1) what expenses did you incur at the start and (2) did the fees you were charging/jobs you were awarded cover those expenses?"
RE: How long to Profitablity?
RE: How long to Profitablity?
90% of small businesses fail in the first year and 50% fail within 5 years, I think I read? I'm guessing that lumps service and product businesses (say, a plumber vs. a retail store) in together - it would be interesting to read how just the service sector does.
And making the same salary you are currently making is certainly ambitious! Again, from the SBA website, most businesses don't profit until their 3rd year of operation. I'll have to see if they give a statistic for service-oriented businesses only. That would be interesting to learn that number.
RE: How long to Profitablity?
Do you have any clients or gigs lined up? By the time I left Dilbert Company I had a client available who helped me greatly in making the leap--so I had plenty of work to do.
Jeff Mowry
www.industrialdesignhaus.com
Reason trumps all. And awe transcends reason.