Bootstrapped businesses have a tendency to be ramen profitable for the first few years of operation. It isn’t necessarily a shame if your business profits do not skyrocket the first month you started. In my opinion, it isn’t necessarily true that the more capital you spend on a business, the higher the probability that it’s going to pay off. Ramen profitability means that your business is making money and that’s good news right there. Sure, it isn’t enough to shake your bank account out of debt but it should give you the motivation to do better and be more because you know that your business would take off in time.
What could be worse than ramen profitability? It’s no profit at all. Your dream business may not be up there with corporate giants or aged brick and mortar small businesses when it comes to cash flow and profit and it is but natural that you may feel a bit disheartened with the fact that you got a smaller profit than what you’ve initially dreamed of. The important thing is, you should not pull out the business just because it didn’t perform the way you expected it to. Apart from paying the bills, your suppliers, liability insurance, your offshore accountant and other business-related expenses, you should not even wonder where your profit goes. Treat it as milestones that your company can realistically reach. It would keep your priorities straight plus you would have that nagging sense of purpose and pride as you slowly watch your profits increase and maybe the next time your business turns a profit, you would have the luxury to eat steak instead.
