If you tell someone your business is growing, they usually assume one thing. You're making money. That's probably one of the biggest misconceptions in entrepreneurship. Sales do not equal success. Revenue does not equal wealth. And sometimes the fastest-growing companies are the ones with the least cash available. I know because I'm living it.
"How's Business?"
It's a simple question. "So how's business going?" The answer sounds easy. "Great." And honestly, it is great. Sales are growing. Customers are finding us. Products are moving. The brand is gaining momentum.
But what most people don't see is everything happening behind the scenes. The inventory. The equipment. The software. The advertising. The subscriptions. The sales commissions. The constant reinvestment. The money that leaves the account before it ever has a chance to become profit.
The Reality of Making Products in America
One thing I'm proud of is that Ebb N Flow Outdoors is made in the USA. And right now, that decision makes sense for us. Not because it's the easiest route — it isn't. Not because it's always the cheapest — it isn't. But because it gives us advantages that matter at this stage of our journey.
Shorter lead times. More communication. Lower minimum orders. The ability to make adjustments quickly. The ability to physically see, test, and improve products without waiting months. When you're a growing company, those things are incredibly valuable. Speed and flexibility can be worth more than saving a few cents per unit.
But Here's the Honest Conversation
I also understand reality. At some point, if Ebb N Flow Outdoors continues to grow, offshore manufacturing may become part of the equation. And I don't think there's anything wrong with admitting that.
The goal of a business is to survive and scale. At a certain point, the economics change. The order quantities change. The margins change. The ability to compete changes. There is a reason so many companies eventually make that move — producing certain products at scale in the United States can be extremely difficult, especially in industries where customers expect affordable prices.
The Truth Is More Complicated Than "USA vs Offshore"
This conversation gets simplified way too often. People want a simple answer: American-made is good, offshore is bad. But business rarely works that way. There are companies overseas producing incredible products. There are companies in America producing incredible products. There are also examples on both sides where quality falls short.
The real question is: can you build a product that meets your standards and serves your customers? Right now, for us, manufacturing here gives us advantages we need. Someday, manufacturing somewhere else may help us reach customers we couldn't reach otherwise. Both decisions can come from the same place — building the best company possible.
The Funny Thing About Margins
People see a $9 product and immediately start doing the math. "Your cost is probably $3, so you're making $6." If only it worked that way.
The reality is much messier. A business isn't revenue minus product cost equals profit. It's product cost, packaging, shipping, credit card fees, website fees, apps, subscriptions, photography, advertising, sales agent commissions, trade shows, samples, returns, accounting, insurance, taxes. The list never ends. Some days I joke that I don't even know my true gross profit margin anymore because every time I calculate it, another subscription or expense appears and takes a bite.
Growth Is Expensive
Here's the irony. A business can be doing better than ever, and still feel broke. Why? Because growth requires fuel. More sales means more inventory, more packaging, more advertising, more systems, more help, more decisions. The money doesn't just sit there. It gets sent right back into the machine.
Building vs Selling
A lot of companies can sell products. Building something is different. Building means making decisions every day. Do I buy inventory? Do I invest in marketing? Do I hire someone? Do I improve the product? Do I add another product line? Every decision has a cost. And every dollar spent is a dollar that can't be spent somewhere else.
The Part People Don't See
The hardest part about building a company isn't always making the product. It's making hundreds of decisions when nobody knows the right answer. There is no perfect roadmap. There is only experience, data, mistakes, and adjustments. That's business.
One Last Cast…
I love making products in America. I love the relationships. I love the flexibility. I love knowing I can make changes quickly and stay close to the process.
But I also have to be honest about the future. If Ebb N Flow Outdoors is fortunate enough to grow into a much larger company, I have to make decisions that allow it to survive. Because the goal isn't simply to say something is made in America. The goal is to build a company strong enough to create jobs, serve customers, and still be here decades from now.
Sometimes doing things the right way means making something yourself. Sometimes doing things the right way means knowing when it's time to change. The hardest part of business is knowing the difference.
Until next cast...
- Dave Erdly
Founder, Ebb N Flow Outdoors