Profitability
Also called Path to Profitability
The state of making more money than you spend, so the business generates rather than consumes cash. The path to it, and when you choose to reach it, is a core strategic decision.
Why it matters
Profitability is control: a profitable company decides its own future instead of depending on the next round. When funding is scarce, a credible path to profitability is what separates survivors from casualties.
For example
After three years of losses, a bootstrapped SaaS company crosses into profitability, so it no longer depends on the next round to survive.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Money, pricing and metrics, part of the Starting Up hub.
eChai Partner Brands
