Business Not Making Money? Here's the Reason(s) Why - Foundr

If your business isn't making money, it's not because of cruel fate or bad luck-there's a reason. Recent years have thrown novel challenges at founders ranging from global health crises to supply chain intricacies, making it harder than ever to build a profitable business.

Below, we'll walk you through all the different causes for why your business isn't making money. Not every reason will be relevant to your business, but you're bound to be making at least one of these profit-blocking mistakes.

Whether your business stopped making money or never made it in the first place, you can get to profitability. Do you have an audience for your product? Why would they want to purchase your goods or services? Is lack of an addressable market the reason you're not making money? If you can't find a market for your product, you won't make money.

If your business isn't making money because of tough competition, you need to make a change. There might have been nothing wrong with their products, pricing, or market fit, but an external factor rendered their previous business model useless.

If pricing issues keep your business from making money, reverse engineer your prices. Now, that's not to say you need a perfect product at launch-it's not.

Humble entrepreneurs often want to start a business to work for themselves-not necessarily to make more money or become "Rich." Another potential reason your business isn't making money is because of your perception. One person might be satisfied with a business that's making them $50K a year, while another entrepreneur would complain that amount "Isn't making money." You might not have the capacity to give your business the time, love, and energy it needs to make money.

There's nothing wrong with your product, prices, business model, or market-it's all about the timing. Your target market might be too small, or your product might not be a recurring purchase.

If your business caters to a small niche, it'll need products that can be repeat purchases or high-end, expensive goods. If you only sell a single product right now, you might need to expand into additional lines to upsell and cross-sell your audience. You likely don't need to turn your business upside down to start making a profit..