In many cases a business that is losing money is picked up by a competitor or as an expansion method. Most businesses that are losing money are rarely losing money because of inadequate gross profit. In most cases the overhead required to run the business isn't covered by the amount of gross profit created by the sales generated in the business. Speaking in very general terms, most businesses that are losing money have an overhead problem.
I was involved with a transaction where a business was essentially "breaking even" or had in some months minor losses. The mark-up on the product was 40 percent and overhead was about 40 percent so they were having a hard time making the business work. The plan was to increase sales, while maintaining the same overhead expense. This was very doable, except, at a break-even situation, there was no money left over for marketing and advertising so sales were remained steady but stagnant.
The only choice was to close or to sell to someone else, after all, nobody likes to work for free, at least not for very long. The owner decided to sell the business, but obviously a business that doesn't make any money is extremely hard to sell. However we were able to find a larger competitor who came in and purchased the business. This competitor ran a company with an overhead rate of 20 percent, so with a stroke of the pen, they changed the business from small losses / break-even to handsome profitability. While the deal and on goings of the business were of course much more complicated than I am able to explain here, the basic premise remains valid.
If you find yourself in a situation similar to what I described here, it might be worth your while to enlist someone to help you approach some larger competitors to explore buying the business before closing shop. Many business buyers are looking at gross profit over net profit, while they are fewer and further between, it may be worth the effort to try and find them and create a win-win situation for both of you.