3 years to hit 6 figures with a 10-20% profit margin would have anybody hating their business. Does this business have the capability of being very profitable for you? If not, cut your losses. Is so, work towards hiring to replace yourself in the day to day.
Congrats, that’s great news! Wishing you all the good fortune in your business ☺️
I do! It took a few years to really start becoming profitable because there is a lot of investing and re-investing in those first 1-2 years.
• The biggest struggle was managing cash flow- they’re high expense businesses at the end of the day and some months can be a struggle especially if you have employees. Learning to predict/forecast figures and set sales goals is important.
• Real profitability took nearly 2 years and it was only after seeing a full year of accounts that we were able to understand the TRUE business expenses- only then were able to properly price products for profit (there are often expenses that are forgotten or not fully understood in the beginning)
• Best advice I can give is to really focus on your numbers. I always recommend people pay themselves like employees and use that as a baseline for sale goals (i.e: I want to pay myself a wage of X, which means generating X revenue per month including all other expenses.)
• Your first hire should be an accountant- product businesses have way too much going on to try and DIY.
• Influencers and content creators are your best friends when it comes to marketing your products!
We’re nearly 5 years in and generating 7 figures/year. We really only just started paying ourselves a very good wage after 3 years- before that it was basically minimum wage- it was a grind.
Because of larger consistent orders that bring in reoccurring revenue without marketing costs