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- Operating at a loss in business means123:
- Spending more money than is coming in.
- Common for new businesses or during periods of growth.
- Not ideal for the long term, as it can deplete cash reserves and lead to business failure.
Learn more:✕This summary was generated using AI based on multiple online sources. To view the original source information, use the "Learn more" links.Operating at a loss is when you’re spending more money than is coming in to the business. Businesses often operate at a loss temporarily when starting out or in periods of growth. This is okay if you’ve got enough in the bank to cover the costs of running your business until your income picks up.www.business.govt.nz/tax-and-accounting/busines…Operating at a loss simply means you’re spending more money than you’re making. And while it’s not uncommon, especially for new businesses, it’s still not an ideal situation and one that shouldn’t be allowed to continue in the long term. Otherwise, eventually you’ll run out of cash reserves and be out of business.aparnesscpa.com/resources/what-to-do-if-your-bus…Running a business at a loss means that the expenses of the business are greater than its revenue. This means that the business is operating with a negative profit margin.www.cjco.com.au/article/running-a-business-at-a-lo… - People also ask
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