Ann: Becoming a substantial holder, page-8

Many aspects to any business making money , one of them is your level of debt finance and cash flow

A business in itself can be profitable , however depending on what debt levels the company who owns the business has to service can make you run at a loss

Take a rental property for person A it runs at a loss due to their borrowings being higher than the rent, person B buys the property (business) and due to much lower debt levels is making money out of the same property, or person b renovates to make money doing something different