Sustainable business practice

A sustainable business model is one that will survive the long term. It’s not dependent upon hopes and dreams but rather works off of basic business practices.

A sustainable business model is one that has a service or product (or multiples) and generates revenues greater than the expenses which will allow the business to cover costs and sustain or even grow. Initially, there might be a need for an infusion of capital but long term, a business must pay for itself in order to be sustainable.

Too often, new businesses look at some of the business models that are currently being used and assume that what works short term for others also will work long term for them. As an example, if initial funding runs low, the concept of simply raising more funding might work, for some, short term, but at some point, profitability will be expected.

The best way to raise additional funding? Sell your products or services. Not only will it generate cash flow, it will also make future sales easier. It’s amazing how much easier the second sale is than the first.

There are some very big companies out there who keep trying to raise additional funding. If they want to be sustainable long term, they will have to pay the bills through revenue and not just through investment.

Just something to think about.

Have a great day!

Lawrence

Leave a Reply

Your email address will not be published. Required fields are marked *