Profitability

Profitability is a key factor in any Investor interest, obviously. Any new business must show the potential to be profitable within a few years of starting.┬áInvestors would expect to see some form of sales forecast over at least 3 years, showing the vital profitability by the end of that year as a minimum ambition, or a very good explanation for the contrary. Showing a considered and supportable forecast leading to profit will confirm in the Investor’s mind that you have weighed up the cost of early growth in all of the key areas of the business i.e. margin attainment, staffing levels, management costs, marketing costs, logistical costs, and any other cost which will impact on (that) vital profitability.

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