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How long does it take for a new business to generate profit?

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Depending on your products and business background and the influence you create in todays challenging market it may take at least 8 to 12 months of time to reach the profit - if its a small scale business but, if its a large scale business it will take more than 12 months depending on the market statistics of demand for your products. But it all depends only after the cost of capital amount invested into the business only after overcoming the cost of first inflow of the capital amount which can take more than 16 to 18 months of time.

Report George Joseph's answer

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Since you have invested some amount of money into the business, it will surely take some time. We have to note that your income depends on the number of customers you have and the kind of business. All you have to do is to build your customer base and you will begin to see sharp rise in profit.

Report Bright's answer

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Profit making in a business does not necessarily have to be long but what determines the time for profit is the nature of the business. Some business profit maybe seasonal, monthly or daily basis. Business is like taking risk, in 6 months to 12 months time there should be profit realisation.

Report Deborah's answer

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Mwajuma hello. Often reality does not match expectations, but especially during the first year (and beyond) you should continue educating yourself, have faith, exercise patience, reevaluate and adjust your business plan, learn by experience, and so on.

Report Miguel 's answer

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Well, a new business may not generate profit as plan but will diligent and patience the profit will come. So be patience you will surely profit

Report I.C.'s answer

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Well for a business too generate profit sometimes it depends on the kind of orientation that you have about a business and how well you know the business.for a business too generate much profit as you want.you must first consider the need that particular business is meeting and what mode of people are you supplying that business.just take a gradual step to understand the need your business is meeting before talking about the profit.

Report Olaniyan's answer

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Dear All, Hello, Thank you so much for your enlightening contributions. Well appreciated. Regards, Mwajuma.

Report Mwajuma's answer

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I am a firm believer in making a profit on each sale because we never sell goods at cost. However, a common challenge to this is that we may not always factor in all costs that it takes to get the product to market. I used to forget to factor transport or cost of airtime into the costs so I would be left with bills that I could cater for at the end of the sales period.

It is indeed possible to make a margin on every product one sells from the very beginning but you put it all back into the business to keep its operations running. This in turn means that for a business to be consistently profitable and to generate more recognisable profit, I agree with all answers before me that it takes time to do that.

Report Kyesubire's answer

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there are different types of profits. the first one called profit margin i.e if sell one unit of your product you are achieving profit margin which is ( price - total cost ) . the second one that you are asking for call ROI and this is achieved after reaching Break even point ( this point is a day in calendar after starting business when Total cash in = total cash out ) and the period between start business and this point called payback period ( this period is what you are asking for ) , you can decrease this period by increasing your price or decreasing cost or achieving over target. you can search for more details about previous expressions. I hope that it may help Regards

Report Hani's answer

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The time to make a profit depends primarily on the type of activity, the amount of invested funds and many other factors. When calculating the profitability of a project, you can assess how efficiently the funds will be spent and how quickly they will pay off.

Report Elizabeth's answer

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Hi Mwajuma,profit generation in any business it depend on the nature of the business in term of cutting cost ,focus,commitments,risks(returns) and last never give up. Thank you

Report Meck's answer

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This totally depends on the industry—but I would imagine most don't start seeing true profits for a year.

Report Nicole (Nikki)'s answer

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New ventures typically don't see a return in the short term (there are exceptions to the rule). This can be due to a number of factors, including, operating as a loss leader to gain market share, building a customer base, or general iterative development of your business. In the first instance, set a concrete business plan along with a comprehensive competitive analysis to set yourself up for future success.

Typically profitability in its early stages can be seen within 18-24 months. Keep focusing on the market and customer needs, as well as your product, and your profits will grow over time.

Report Peter's answer

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