Selling is not enough
You have a business. It’s starting to sell products. Money’s pouring in like never before. Everything’s fine, right?
Well, it depends.
It depends on what your profit margins and customer acquisition costs are.
Some businesses will always be barely profitable. If your margins are slim, you can have thousands of customers yet be fighting to make ends meet. But, if your margins are good, a few customers may be enough to keep your head out of water.
Profit margins can be close to 100% of the sale price. It makes a huge difference in your growth potential, the stability of your business and your reactivity to the market.
Do your due dilligences before you start. There’s a reason why some opportunities are not worth pursuing. Some businesses will never scale and are doomed from the start. Selling is not enough.
Photo credit: Hillary Manuel