The Small Business Forum

The Small Business Forum

Survival (contd)
  • Costs are mainly the short-term management, production, and sales costs. Financing may be in loan, equity or trade credit. Other parties are more likely to consider putting in money with the evidence of possible success. Suppliers may also consider credit as the business becomes more stable and better known.

  • New competition is likely to arise as others see some evidence of possible success.

  • Break-even may be by the second year of operation. However, after business start-up, efforts to reach break-even commence. Loss-making cannot continue for long. The loss period must be shortened, and break-even point reached at the earliest possible time. Many of the businesses remain at survival level, just making a small profit.

Comments, Questions and Suggestions welcome.

drkibuka@thesmallbusinessforum.co.ke

+254-729524219

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