If you are not profitable fold.
When I went to school they still taught that.
Over how long a period of time? Should Kodak have folded the first quarter they lost money?
I am reminded of the time when the Fuller Brush Company went bankrupt and was in receivership. They brought in an old guy to babysit the facilities until everything could be sold and settled. While they were waiting, the old guy turned the company around, eventually bringing Fuller Brush out of bankruptcy and back into profitable operation.
The VAST majority of small businesses do not become what we would consider profitable for at least 3-4 years...building business, taking clientele from your competitors takes some doint....I have started, from scratch, 5 small business ventures and while ALL of them became profitable, all of them took a few years.
Want to open an auto repair business....have the mechanical experience...have the necessary tools, purchase an inventory, rent or purchase a building, turn on the heat, turn on the electricity, purchase the necessary insurance, buy some advertising, make, or have made some signage, pray for good weather, and then, maybe, open the door. Stand there and wait for your first customer.......
and you say that for the first year if you cannot make a profit that you should close?????
I have no idea of where you went to school....but they were VERY, VERY wrong.....only a coward would do as you suggest