Cyber Monday Sale! 50% Off All Access

The Crossroads of Profitability: What Now? For entrepreneurs, finally getting into the black is a huge accomplishment. But it can also be a stressful problem.

By Adina Grigore Edited by Dan Bova

Opinions expressed by Entrepreneur contributors are their own.

As you may have gathered from the title, I am alluding to profitability. Let me just open with this: I know what you're going to say when you read through this: "Psshh, good problem to have, Adina." Don't get me wrong: I want you to know that I am aware of the privilege, luck, excitement and accomplishment of profitability. But this sort of small-business growth does also happen to be a stressful problem.

Related: How a Startup Made It During Its First Two Years Without Relying on Investors

Early this year, my organic skincare company S.W. Basics became cash flow positive. This has happened before, but not to this extent. For the first time, we had sustainable profitability in sight. We had spent months working really hard with our amazing CFO to make it happen and to succeed was almost surreal. Also, in consumer-packaged goods, it's actually pretty rare to become profitable at all. Many companies are still in the red when they become acquired, and the acquiring company works to reverse the losses. It is far from common for a small brand that is growing to also be making money, which is why it's such an achievement.

So yes, go us. But this is where the tricky part comes in. I have already had calls with investment teams who are super excited about this, which is incredibly thrilling. We are in a really good position to take on more money (we have completed two raises in the past, both for equity). We have growing revenue and demand. It's beautiful timing really. But at the same time, we also have cash. So for the first time, we're staring at a bank account that could fund the company's growth. So do we take the cash influx and go full speed ahead or continue at a slower pace, without the help from anyone else?

Related: Fundraising 101: The First Timer's Guide to Pitching

We have no idea what to do. My co-founder (also my husband) and I debate this issue almost daily. On the one hand, slower growth using the company's cash helps us maintain control and keeps outside input to a minimum, which helps us maintain the integrity of the brand. Plus we don't feel like we have bosses, which is a huge perk of keeping your investment team small. On the other hand, more money equals faster growth. It's really that simple. Shouldn't we take advantage of our momentum? Shouldn't we seize the moment, raise a really comfortable amount of money and focus on growing the business as much as possible, without worrying about cash constantly (something that sadly stays with you even when you become cash-flow positive)?

Honestly, we don't know what to do. This question feels so deeply personal that I even wonder if founders like me deal with it differently than CEOs who weren't there from day one.

What about you? Have you had the magical, wondrous, terrifying experience of seeing true profitability on the horizon? What did your company do—and how do you feel about it now?

Related: Why Now Is the Time to Seek Startup Funding

Adina Grigore

founder of S.W. Basics

Adina Grigore is the founder of S.W. Basics, a Brooklyn-based natural products company that makes an all-natural and sustainable skincare line. The idea for S.W. Basics came to her after she finished her education in holistic nutrition in 2007 and founded a grassroots health information company at the age of 23. Today, she’s never been so happy to have been blessed with sensitive skin -- and a zeal for entrepreneurship.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

There Are Certain Words That Will Break ChatGPT. I Tried Them — Here's What Happened.

ChatGPT appears to be unable to process requests that contain a few notable names.

Business Plans

'Irrelevance Is Worse Than Death': How This CEO's Competitive Drive Resulted in a Global Powerhouse AI Startup

From a sports-centric childhood in Boston to leading the global AI startup SuperNormal, Colin Treseler's journey is a masterclass in persistence, adaptability, and the art of using time wisely.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Tesla Cybertruck Factory Workers Reportedly Told 'You Do Not Need to Report to Work' for 3 Days This Week

According to a memo first viewed by Business Insider, Tesla factory workers in Austin were reportedly told to stay home Tuesday through Thursday.

Business News

'Subject to Apple's All-Seeing Eye': An Apple Manager Is Accusing the Tech Giant of Spying on Employees, According to a New Lawsuit

The employee alleges that Apple can conduct physical, video, and electronic surveillance of employees, even when they're off the clock.