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A business can start losing money and later become profitable. Also banks tend to ask for something to pray in case that never happens, so they sometimes profit

• bunderbunder 9y ago
  A business can, but it's much more likely to be the case in something like software where the majority of costs are fixed, and economies of scale are such that you can relatively easily grow into profitability. I'm no business expert, but I'm guessing the story is different for small town restaurants. If you've got one that's been open for 3 years, it's probably fairly safe to say that its growing days are over. By then, everyone in town knows about it, so there's not much prospect for expanding the customer base. If anything, I'd expect the company's business to slowly dry up over the long haul. Money is flowing out of small towns, so, even if every single customer is a loyal regular, they'll still be going out less and less over time simply because their supply of excess income to spend on things like eating out is shrinking.
  • narag 9y ago
    I'm no business expert either, but I know a handful of small town bar owners. Without too much detail: just consider the case in which someone buys a bar or rents a place that was already a bar before. The people that I know would make an inauguration party, adjust prices and renew the place and the offered products for a better fit with prospects. And suddenly a failed place becomes a profitable business.