Business Timeline: How Long Will it Take for Your Business to Make a Profit?

How long will it take my start up to make a profit?

As a small business start-up expert, that's the question I most frequently get asked.

How long does it take once you've launched your business to the world for you to see a profit? Even a little profit?

The traditional answer is: you probably won't see sustainable profit for five years.

The optimistic answer is: it takes between 2-3 years to see sustained growth profit.

For most women entrepreneurs starting up a business, the answer lies somewhere in between. And the following three points are important to keep in mind:

• When talking about the success of a start up, slow and steady has a much better chance of winning the race.
  
  
• Start-ups always take more time and money then expected. Once the business is up and running, plan on a one year roller-coaster adjustment period. This is the time when most new business owners throw in the towel. Don’t!
• If, however, you keep the faith and make it past the two-year mark, you can expect to see some stabilization and growth. From this vantage point, you can begin focusing on how to sustain that growth and project profits.

Several years ago, Entrepreneur Magazine put forth their business start up timeline and wrote an informative five-part series that is well worth the read. Charting Your Business Timeline offers women entrepreneurs both a general overview of the the life of a new business and helpful tools to ensure its success.

Entrepreneur Magazine's Guide to Business Timeline

•     Year 1: Starting Up
•     Years 2 to 5: Time to Grow
•     Years 5 to 10: Growing to the Next Level
•     Years 10 to Retirement: Managing Maturity
•     Moving On: Exit Strategies

Where are you in your business timeline? Did it take you longer or shorter to create a sustainable profit than you originally thought? What were some of your keys to making that happen? Leave a comment and let us know!

Susan L. Reid

Award-winning author of Discovering Your Inner Samurai: The Entrepreneurial Woman's Journey to Business Success

Comments

[Cassandra]

I opened an ice cream shop/ cafe in September 2010 and I am having a hard time. I have thought about selling it but then I think I should keep it. I have to work a part time job at midnight to make money. I hope this won't be forever.

[Lady Samurai]

Good for you that you are working a part time job to flow money to you. Many new small business owners do exactly what you are doing. Keep it up. I'm thinking summer is a good time for ice cream. Hopefully your shop will pick up business soon!

[Lady Samurai]

Thank you. You really do need to keep the faith when you start up, don't you?

[michael]

hello! i opened a lawnservice(mostly i spray and fertlize no mowing) up in april. yes it has been a little rough, thank god for my wife and family that helps and supports me. i went in it with very little money, got a loan ,but things are still slow.should i market more in 2011. is the second year at least better than the first. thanks

[Lady Samurai]

Hi Michael - congratulations on completing your first year of owning your business. The first year is filled with ups and downs, isn't it? Now that you have the first year out of the way, yes, concentrate on marketing as much as possible in 2011, ask for referrals from your highly satisfied customers, and offer superior service. All the best!

[KirbyBriana26]

People in all countries take the loan in various creditors, because that is easy.