If you are like me then when you first start the business, you’ll probably not keep track of your profits and spending. I know it’s hard to do it when you have just so much going on and it’s all new to you. However, this is something that you’ll want to start early and you’ll be grateful for it in the long run. Here’s a quick story:
I started this and obviously used all of my own money to start. I didn’t keep track of any of the costs that I had. This was a very bad mistake. I didn’t really know if I was making money once I was selling items and getting clients. What I did know, was that I was getting paid and receiving money. This is something I think most people get stuck with. You realize you’re getting paid, but since you’re not actually tracking anything you don’t know if you’re getting any profits. I would sometimes try to think about how much I spent and how much I received to estimate profits. This method did not work out well at all. I had guesses, not stats.
When did it get bad? It got really bad once I started to have issues paying for things. This was my big wake up call. I finally started to track all of the supplies I bought and the cost. Then I would put in the price and calculate the profits. I wasn’t using any complicated program. Excel was my go to and it worked well, and to be honest I still use it because I see no reason to buy a program.
Now if you don't want to use excel here's a quick video that goes over a cool app to track your profits.
Keeping track of profits