Browse Definitions:
Definition

path to profitability (P2P)

Path to profitability (sometimes abbreviated as P2P, which also stands for peer-to-peer ) is a term that refers to a business plan that is designed to take an enterprise from startup to turning a profit. In Internet business, the prevalent emphasis on profitability, especially in the e-business world, is in contrast to the attitude prevalent in recent years, when dotcom ventures were often encouraged to open for business, "burn" enough venture capital to dominate a particular business niche, and worry about profits later. Industry and stock market analysts suggest that the popularity of this term indicates a return to traditional business practices and a new, more mature stage in the evolution of the Internet.

Before the market slump of the spring of 2000, almost any entrepreneur with a concept and a PowerPoint presentation could obtain venture capital funding for a dotcom enterprise. Optimism about the future of e-business led to a suspension of traditional business principles and practices: an entrepreneur was not necessarily required to demonstrate a clear business plan - with profits in the foreseeable future - because the ultimate payoff was expected to be so large.

With the slowdown in technology stocks, there has been a return to standard business practices. Investors are much more cautious than they were in the early days of the dotcom boom. In order to obtain funding, entrepreneurs are expected to have a well-organized business plan with a clearly articulated - and hopefully short - path to profitability. Some analysts believe that the market change was, in a literal sense, a correction, since the practices employed did not lead to sustainable growth. Many are still optimistic about the future of e-business, although that must be in a world in which the old business rules - such an enterprise's need for a path to profitability - still apply.

This was last updated in March 2011

Continue Reading About path to profitability (P2P)

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

  • smart contract

    A smart contract, also known as a cryptocontract, is a computer program that directly controls the transfer of digital currencies...

  • risk map (risk heat map)

    A risk map, also known as a risk heat map, is a data visualization tool for communicating specific risks an organization faces. A...

  • internal audit (IA)

    An internal audit (IA) is an organizational initiative to monitor and analyze its own business operations in order to determine ...

SearchSecurity

  • evil maid attack

    An evil maid attack is a security exploit that targets a computing device that has been shut down and left unattended.  An evil ...

  • Common Body of Knowledge (CBK)

    In security, Common Body of Knowledge (CBK) is a comprehensive framework of all the relevant subjects a security professional ...

  • rootkit

    A rootkit is a program or, more often, a collection of software tools that gives a threat actor remote access to and control over...

SearchHealthIT

  • value-based healthcare

    Value-based healthcare, also known as value-based care, is a payment model that rewards healthcare providers for providing ...

  • health informatics

    Health informatics is the practice of acquiring, studying and managing health data and applying medical concepts in conjunction ...

  • clinical trial

    A clinical trial, also known as a clinical research study, is a protocol to evaluate the effects and efficacy of experimental ...

SearchDisasterRecovery

  • crisis communication

    Crisis communication is a method of corresponding with people and organizations during a disruptive event to provide them with ...

  • Zerto

    Zerto is a storage software vendor that specializes in enterprise-class business continuity and disaster recovery in virtual and ...

  • crisis management plan (CMP)

    A crisis management plan (CMP) is a document that outlines the processes an organization will use to respond to a critical ...

SearchStorage

  • cache memory

    Cache memory, also called CPU memory, is high-speed static random access memory (SRAM) that a computer microprocessor can access ...

  • RAID 10 (RAID 1+0)

    RAID 10, also known as RAID 1+0, is a RAID configuration that combines disk mirroring and disk striping to protect data.

  • Red Hat OpenStack Platform

    Red Hat OpenStack Platform is a commercially supported distribution of open source OpenStack software designed to build and ...

SearchSolidStateStorage

  • hybrid hard disk drive (HDD)

    A hybrid hard disk drive is an electromechanical spinning hard disk that contains some amount of NAND Flash memory.

Close