Entrepreneurs · Starting a business
Profit vs revenue
The single most expensive mistake new founders make.
6 min read
Try this
Your hand-made candle business does $5,000 in sales this month. Costs: $1,500 wax & wicks, $400 jars, $300 ads, $200 shipping, $400 your own labor at minimum wage. What's your profit?
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$5,000 − ($1,500 + $400 + $300 + $200 + $400) = $2,200 profit. Don't forget to count your own labor as a real cost.
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