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:
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.
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