Bridge of Profitability

Each idea needs to hit a certain scale to be profitable. Depending on overhead and profit margins, some ideas are profitable on day 1, and others require millions of customers to turn a profit. The biggest ideas, like Facebook, Uber and Amazon, often fall in the latter group. If your idea requires scale to be sustainable, venture capital can act as a way to bridge the gap between idea and profitability.

Think about the scale your idea needs to hit profitability. Is it a 1,000 customers or 1 million? That need will drive both the amount of time it takes to hit profitability and the amount of venture capital you need to get there.