When Am I Making Money?

Shelby Huband asks:

“Will will you be able to tell if you are making money once you start your business?”

I’m most often asked where to find money to start a business, which is outlined in this finding money section. However, this question is just as critical.

You are making money when your profit is greater than your expenses during a specific time frame, whether monthly, quarterly, or yearly.

This same answer is true to determine when you’re making enough money to cover not only your gift basket business expenses but also your personal living expenses.

Take time to list all of your monthly costs, which are what you pay for mortgage/rent, transportation, food, school, communication (telephone land lines and cell phones), heat and electricity, etc.

These are the expenses that, when consistently covered by your gift basket revenue (after paying for business expenses), with leftover monies (profit) to place into retirement and vacation accounts, you’re indeed making money and living a comfortable lifestyle.

I encourage you to invest in time with a certified public accountant to understand the “making money” concept to meet your goals quicker rather than later in business.

[tags]gift basket business, when am I making money, sales and expenses, profit and loss[/tags]