I was listening to a podcast about FreshPet dog food. The owner said they have yet to turn a profit. Can some explain to me like I’m 5 years old how a business can run without making profit? How do they pay their bills? How do they pay their people? How do they buy ingredients? How do they pay their personal bills? I just can’t wrap my mind around it.

  • aztec337@alien.topBEnglish
    1·
    1 year ago

    The company does a great job at looking valuable to investors. Being valuable is most of the time based on speculation. Being valuable is also largely confused with the word profitable. It operates for a period of time on capital raised from investors. If on a long enough timeline it can’t turn a profit those investors lose their money.