Company · Profit

How long is too long to be unprofitable?

reetika maheshwari ISTQB Certified Quality Assurance Engineer.

May 1st, 2017

I was reading an article recently about how Hotel Tonight was unprofitable for something like 5 years with a burn rate that got up to $2.5m a month. They turned it around, but obviously most us aren’t Hotel Tonight and won’t have that much runway or funding. For a smaller, series A-funded company, how long is too long before you have to become profitable?

Shel Horowitz I help organizations thrive by building social transformation into your products, your services, and your marketing

May 3rd, 2017

Amazon lost money for years. Google was several years old before it even introduced a revenue model. There are no right answers, in other words.

OLUWASEUNH AGEH CEO @miami castle media limited

May 3rd, 2017

it depends on the kind of managerial policies which is put in place and it depends on the intellectuals employed in the train of production or management

Jay Madrigal

May 4th, 2017

People build businesses to make money. The focus should be on revenue from day 1 and the quicker you start becoming cash flow positive the better.

I can't speak for any of the businesses who weren't generating any revenue in their first couple of years but if they have investors that will throw money to keep them afloat until they start generating revenue then no complaints here.