Most of us have probably heard of Groupon, a social media website that allows businesses to post special discounts and coupons to their restaurants. (They boast: "Save 50-90% off!) Then consumers can look up coupons based on their geographic area.
Groupon exploded onto the scene, and soon became a driving force in local business's "deals" marketing. Groupon started out with an excess in capital, a promising concept, and a good plan for profitability. So how did they post a net loss of almost 120 million?
Even with the case of a large scale company with a large budget, Groupon is a perfect example of how a business should be profitable before they become large. Think about how the same principle can apply to your company, especially if you are looking to expand.