Real Business Lesson - A business must be profitable from day one.
If it doesn’t make money, it’s not a business, it’s an expensive hobby and waste of time. My personal experience: Before investing time and money into developing a product, I was already prospecting and closing clients. I’ve even sold before the product was finished. Why do I do this? Because when someone pays me upfront, I know what I’m offering solves a real problem. That validates my idea and allows me to build exactly what the customer needs, not what I think they want. It also lets me measure my Return on Investment (ROI) from day one. ROI is a metric that shows how profitable your business is. You calculate it by dividing your profit by the amount invested. Quick example: if you invest $1,000 and generate $5,000, your ROI is 400%. Measuring ROI helps you: - Identify if the money you spend on marketing, production, or equipment is actually generating results. - Make quick decisions: if something isn’t profitable, fix or stop it before losing more. - Know where to reinvest: double down on what works and eliminate what doesn’t. What I learned: 1. Prospect before producing: Talk to potential customers and validate if they are willing to pay. 2. Close sales first and ask for pay in advance: If they buy, you’ve validated your business and created cash flow. 3. Build based on demand, not assumptions: Let the market guide you, not your ego. 4. Measure ROI consistently: This ensures your business stays profitable and grows sustainably. Question for you: Are you already measuring the ROI in your business? Would you dare to sell and measure results before you produce?