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Does Profitability Matter as a Startup Company?

Does profitability matter if you are a startup business? The easy answer should be yes, but there are some instances when it doesn’t matter. In order to grow a business, you need to have a healthy tension between profits and growth. According to Mark Suster, a two-time entrepreneur, not everyone is fit to focus on profitability, for instance:

  • Someone who has or perceived that they have the opportunity to build an immensely scalable business
  • Has easy access to capital by investors who are committed to building businesses at internet skill

That doesn’t go to say that you shouldn’t care about profitability as a startup business, though. Most companies (98%+) should be profit focused.  Being profitable means that you aren’t relying on other people’s money and you have some more freedom.

So, for most startup businesses, profit should matter.

Find more in-depth details about if startups should care about profitability.