With an unlimited number of ways a website or business can fail, who can choose? Profitability is the only thing that matters, despite the invention of venture capital which makes short-term profitability an option rather than a requirement. These are the top 3 cash traps and pitfalls to watch out for.

Choosing a business that isn’t very profitable.
Even if your business generates millions of dollars in revenue, if your margins are too small or your costs are wildly variable, you may find it challenging to be profitable.

This is seen today with the creator space. Platforms keep launching, yet margins are narrow, and most fail to be profitable for years (if ever). Beyond that, what problem is being “solved” here with 50 different platforms that a dozen or fewer competitors aren’t solving?

Build value for your customers or clients, don’t destroy your profit margins for the sake of competition. People are happy to pay for a premium product that isn’t fluff. If your business model isn’t profitable, it is critical to determine if you’ll be profitable with scale (or not). If not, growing your business will only accelerate your losses. The only option is to reduce costs or raise prices in that situation.

Pricing or High Costs
Over 18% of founders state that pricing issues or high costs caused their businesses to fail. It is imperative to have a pricing strategy, but more than that, your plan has to make sense. [Continue Reading in XBIZ Magazine]