There are three basic lessons your elementary school teacher taught that small business entrepreneurs need to keep learning, numbers, words and history. Let us explain.
You spend time creating products, providing a service or even driving around delivering door to door. Whether you are a seasoned small business entrepreneur or just starting as a gig worker, making money is the goal. Wait. The goal should be making profit.
Let’s say you have a t-shirt business. You buy the t-shirts, create the design, make a sale and deliver the product. How much money do you make? How much do you profit?
To break this down you need to understand your basic numbers for your small business as an entrepreneur.
- How much did the t-shirts cost you including shipping or fuel to pick up?
- How much did the design cost or how much time did it take you to create the design?
The question many entrepreneurs forget is:
- How much did it cost you to sell the t-shirt and deliver it?
To answer this question can get tricky. This is where the words used and understanding sales history.
Remember we are talking about a basic t-shirt business. At first thought a novice would think customers see the design and buy it. We call that the walk in business, but the majority of the sales will come from a small business entrepreneur’s ability to know what type of design sales best at any given time. What are the relevant events happening that the customers would like to show support for?
Many questions? Yes. Finding the answers will equal profit in business. The answers require the three basic elementary lessons for small business entrepreneurs to keep learning numbers, words and history. In the adult world we call these financial plans, marketing strategies and the SWOT Analysis.
How profitable is your small business? Rhodes Porter representatives are ready to help you develop a plan to create profit in your business.