By Dogster & Catster

Dogster & Catster were born in a period when web properties were considered loss-leaders, but we decided to find out how big a business it could be. In July of 2005 we first achieved profitability and ran in the black for next 13 months before putting to use the proceeds of an Angel round we closed in September 2006. We returned to profitability a year later and we’ve been in the black ever since.

Here are our best lessons and strategies for growing a business in the technology era that focuses on earnings and profitability

  1. If being a business person is not your goal find a business partner immediately. Without someone on the team that relishes sourcing customers, closing revenue deals, perfecting sales messages, it will always be an afterthought.
  2. Consult anyone you know that has run a earnings-based business (VC funded companies are rarely helpful here). The concerns of a restauranteur, law firm, or even landscapers are entirely applicable when it comes to long-term strategies for profitibility. Anyone running a business for years will know volumes about hiring, cashflow, and compensation.
  3. Spend your money when it’s in the bank, not when the deal is agreed  to. To know what you actual profit margin is you must know both how much you made and how much it cost to provide. If you spend the money prematurely you’re likely going to be spending more than you earned leaving yourself with a shameful net loss.

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