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Making a profit - Page 5

post #61 of 71
First, I have to echo the other posters and thank all of the pros for their real and excellent advice. I have been seriously talking about taking the plunge and diving into business on my own in Jan 2010. After reading this thread in conjunction with another, I am giving that a second thought and will probably push it back as I work to (1)drastically increase my speed, (2) train my cousin (hard worker who agreed to work with me), (3) develop a killer marketing (and biz) plan, and (4) SAVE in my family account and find sometime to invest in the biz for a operating cost reserve.

You guys are so amazing and I am truly grateful.

I do have a question regarding profit vs. payroll. My thinking before reading this was that my salary would be considered one of the business' fixed costs. No? I've seen a couple of posts that sound as if the poster if talking about profit and payroll as one in the same. Is this the case??? I viewed my paycheck as an expense and profit as what was left after that and the many othe expenses were covered.

Please clarify.

Thanks,
Toni
post #62 of 71
I can't speak to what the others do, but as an accountant you absolutely should be factoring in your wage when you calculate your selling prices.

Now, whether or not you pay yourself a salary, or incorporate and pay yourself dividends, or a combination of both, is a decision between you and your accountant. There are tax implications to consider when deciding these questions

However, if you are NOT factoring in wage costs, you are totally going to be selling yourself short - especially when you DO have to start paying someone to help.

Technically, profit is what you have after you've paid all your expenses, including salary/wages. Profit, IMO, shouldn't be your only remuneration.
post #63 of 71
This is a very informative thread. It really is an eye-opener for us "newbies" who dream this for the future. Thanks to all you professionals for sharing all this information. You all are my inspiration!
post #64 of 71
Quote:
Originally Posted by indydebi

P.S. Anyone who is frustrated with the management part of running their business has to buy the book "The E-Myth" by Michael Gerber.

Go to Amazon and order it TODAY!!



Thanks for the tip IndyDebi! I ordered the book and LOVE it! Many "aha!" moments!
post #65 of 71
WOW, So much information.

I have the home based busienss. My prices are a little higher than others that are also home based. I don't think they even make a dime for the prices they offer. (Hint- hint girls.) icon_lol.gif

I am fortunate that my shop was opened with cash flat out and no DEBT execpt what I've tried in advertising the first year. I have "cash flow" and pay all the bill with out too much of a hitch. I'm not quite 2 years into this. So far so good.

My question is will that get better? Word of mouth is SLOW. I like the Chamber of COmmerence idea. I'll do those soon. I keep passing out cake but it just does not seem to get me much results.

Any other ideas to ge this movign faster?
Maybe I should have my web site optomized? or change something on it. I think my home page could be more eye catching. Take a peek and tell me wht you think.
It's ALL about the cake!!
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It's ALL about the cake!!
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post #66 of 71
Join BNI. Here are the chapters in Missouri: http://www.bni.com/Default.aspx?tabid=93 HIGHLY recommend it! I've been a member for 2 years. Contact your local chapter and tell them you'd like to visit one of their meetings to see what it's all about.

Optimization .... yes. Macy's Dept Store found me just days after my optimization was in place and I've been doing stuff for them for over a year (including making lunch for the Indy 500 drivers who were in the stores giving autographs just last month!). A local college found me and ordered 1800 cookies for one of their events.

I've also found good results with being a chamber member, but it has to be a good chamber. I belonged to two and I'm dropping one of them. The only time they contact me is when they want expensive "elegant" food for less than nothing. Ironically, a Chamber's purpose is to promote the small and local business, but this particular chamber seemed to only call me when they wanted something that would put me OUT Of business. The other chamber is AWESOME!! Business from that chamber has paid for my membership 10 times over.
post #67 of 71
Enjoyed this thread!! Lots of great information!
post #68 of 71
Enjoyed this thread!! Lots of great information!
post #69 of 71
Enjoyed this thread!! Lots of great information!
post #70 of 71
I'm also a member of BNI! Love it. I have made so many business contacts there.
post #71 of 71
Quote:
Originally Posted by korkyo


I have the home based busienss. My prices are a little higher than others that are also home based. I don't think they even make a dime for the prices they offer. (Hint- hint girls.) icon_lol.gif



Me too, home-based. I can't compete with the retail bakers (and some other home bakers) because they are charging $1 per serving or less, but if they want to sweat it out for a few bucks, they can have it. icon_smile.gif
No longer baking and caking. Medical transcriptionist and Thirty-One Gifts independent consultant.
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No longer baking and caking. Medical transcriptionist and Thirty-One Gifts independent consultant.
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