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It depends what net profit % was. Businesses that lose money on every sale are not survivable. They need to track all of their costs and see if it's going to

• JoeAltmaier 13y ago
  Actually in the modern business world, as long as you're growing, you're survivable. Cash influxes (loans, investment) can support a business for years - Amazon did it. You just need to convince investors that you have a story.
  • ballard 13y ago
    That's an anecdotal example. Amazon is different in that Bezos has enough room to dial back reinvestment and generate more cash or turn up reinvestment to reduce apparent profit. Profit doesn't just magically appear, costs and pricing have to eventually face reality. Sooner, the better. Spending more money does not necessarily make a business any better. That's like these noob business people that buy stock before they sell any of it... An example of a horrible waste of cash. Without profit, it's not a business, it's an idea-guy dream.
    • JoeAltmaier 13y ago
      No that's just an 'example'. Many startups fit this model. I'm in one that's in the 5th year, still growing, still with financial backing. Many are in this mode until bought out (or of course until they fail).