Have you ever had a friend look at a business and randomly throw out numbers that made it seem like that business owner must be making serious bank? We’ve experienced that many times, and know from conversations with operators and owners in those industries that their real profitability is often far, far less. The reason is often that there are unique challenges to profitability in almost every industry and so we wanted to create a space for entrepreneurs from across industries and markets to discuss the challenges to profitability in their industries.

Ariel Kochbarski

Retail and e-commerce are really hard to become profitable quickly. It takes time to make back all your costs that you put into the brand and that you continue to do in operating it. The biggest challenges independent brands face are cash flow and inventory purchases. In retail, we have to create the items before the customer even sees them. The goods are created a minimum of 1.5 to 3 or even 6 months ahead of time. We have to bet big on what we think will sell and then front that cost to get our items produced. Many garment factories have minimums that must be met and without you meeting those, your items cannot be made. It’s really hard, as a small brand, to not only meet minimums but also to qualify for terms, like a Net 30 as an example of an industry standard, where you can pay for your goods 30 days after receiving them. Read more>>

Courtney Capps

The high-end ball python breeding world is completely different than the pet-side of the industry and is a mix between business, farming, and gambling all rolled into one niche, tight-knit industry. Due to the rarity and demand of specific genes, it is common for a ball python that costs $10,000 in 2022 to only be worth $1,000 by 2025. This price fall is due to the increase in supply as more breeders are able to reproduce the rare gene or genetic combination that contributed to the high valuation, as well as the compounding effect of decreased demand once the breeders who were interested in the gene no longer need to buy more animals since they can breed and produce their own. Read more>>

Alex Updike

I think the biggest challenge to running a profitable private event and wedding DJ (or just entertainment) company is standing out from the competition and proving your value. The wedding industry especially is one of those places where there is ALWAYS a cheaper option for couples if they choose to go that route. So to be able to charge your value, and be able to prove that value to couples when they inquire with you, is a challenge. This challenge is then made more difficult by the fact that most couples don’t really know what they’re doing. And it’s not their fault! But most couples planning a wedding have never done so before. So everything is new, there are so many details they don’t even know that they should be asking about, and it becomes very easy to become enamored by a “cheaper” option that sounds good but may or may not end up living up to your expectations. Read more>>

Gabby Grahek

Social media consultation is a service-based business. One thing I’ve found to be particularly difficult for myself and other entrepreneurs in the social media profession is the constant battle between the perception of access equating to ease. Platforms like Facebook and LinkedIn have been around for 20+ years and you would be hard pressed to find someone who has never, at one time or another, had a profile on one or more social media sites. Because of the availability and access to these platforms, there’s a sense that running a brand profile can be done well by anyone. My favorite comparison for this is that of the automotive industry. Read more>>

Jon Pearce

One of the biggest challenges to profitability in with any creative work is the undervaluing of creative work. Many clients expect high-quality content at low rates, not realizing the costs of gear, the amount of time that editing can take, and expertise. I have, on a couple of occasions, taken on a project where the budget ended up barely covering my expenses, yet the client expected extensive work. Additionally, inconsistent workflow makes steady income difficult. Balancing fair pricing with client expectations is a constant challenge. Read more>>

Drezden Palms

Most people look at a thriving salon and assume it’s a goldmine—fully booked, a buzzing team, and services in high demand. But behind the scenes? The reality can feel very different. The biggest challenge I’ve seen in the beauty industry is that many salon owners only take home what they personally earn in services. Their team might be busy, but with high commission rates, the “profit” from those services often disappears into rent, utilities, supplies, and everything else that keeps the salon running. Read more>>