© 2008 Dream Merchant • 2309 Torrance Blvd. #104, Torrance, CA 90501 (310) 328-1925 email: Jkm316@aol.com
Kids Kreative Korner
You Certainly Want to Make a Profit in Your Business, But How Much?
By Bonnie Drew
When a business first starts, reaching the break-even point is a big day. But no one wants to continue operating a business at the break-even point (the zero profit level). What is your goal for profit levels in your business? How many more units do you have to sell each month to reach that goal?
Fair Profit: For some people, profit is a negative word that means you took advantage of other people to benefit yourself. This is not the kind of profit we are speaking about here. We are looking for a fair profit earned by providing a product or service that benefits the consumer.
All young entrepreneurs deserve to make a fair wage or a fair profit from their work. If you don't make a profit, you won't be able to stay in business very long. Then the community will lose out on the contribution your business would have provided.
Determine your break-even point (see the Dec/Jan issue of the Dream Merchant), then go beyond that point to a level of profit you will enjoy. Successful entrepreneurs always use goals as targets for progress.
State your goals for sales and profits in measurable terms, and include them in your business plan.
Bonnie Drew is the author of FAST CASH FOR KIDS (2nd edition), published by Career Press (1-800-227-3371). She is also the creator of the KIDS BUSINESS software for young entrepreneurs, available from Homeland Publications (713-332-9764).
Drew is also Editor of YoungBiz online magazine, published by Kid's Way, Inc., a company that helps youth prepare for business and the workplace of the 21st century. For more information, write to Kid's Way at 5589 Peachtree Rd, Chamblee, GA 30341 or call toll free 1-888-KidsWay (1-888-543-7929). YoungBiz magazine can be found at http://www.youngbiz.com
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