Profit · Revenue

How long til profit?

Jordan Plosky Co-Founder and CEO at ComicBlitz LLC

September 4th, 2015

As you may have seen in my last post (acceptable runway), I got a lot of great feedback from people.  My follow up question now is, by what point should a company be profitable?  And is there a point where if you don't reach that, it just isn't worth it?  
As of right now, our projections show us starting to turn a profit around 29-33 months, depending on certain variables.  Is this too long to profitability, or do we have even more time to reach profitability, in a reasonable manner?
Thanks!

David Crooke Serial entrepreneur and CTO

September 4th, 2015

I don't think you can make a hard and fast rule, for example SalesForce is not yet profitable but runs well.

Neil Gordon Board Member, Corporate Finance Advisor and Strategy Consultant

September 5th, 2015

There's a macro answer to profit and a micro answer. They're different.

You can spend a long time spending on expansion, i.e., no profit during that period; but at the same time, providing product or service to an individual customer needs to be profitable within some reasonable period of time. Zipcar was a good example; profitable in regions where they were established, but not profitable overall because of growth into new markets.