A business with 2% to 5% profit margins has almost no safety net. One bad month wipes out your profit entirely. The speaker argues you need to aim for 15% margins instead to survive unexpected hits.
Unfortunately, when you're not profitable enough, here's what I like to say. People making 2, 3, 3.5%, 4%, 5%, I don't care. You're too close to zero. Mm-hmm. So to go from those numbers, which the massive percent of people are at, to 15, you're so— it's so much easier to make a few mistakes and then fall to zero. Yeah. That's why you gotta get— see, that's another reason why you gotta get away from close to zero.
