When you are starting a business, remember that while profits are important, your goal is to grow the business to a point where it brings in enough profit so that you will find it worthwhile to continue operating the business for the future.
Even if you don’t rake in millions of dollars, you should have enough revenue without going broke. Your business must be able to pay the bills for you to continue.
Track sufficiency using “target monthly revenue” (TMR). Calculate the money that you’ll need to pay out each month, the TMR will help you evaluate if you have reached the point of sufficiency. As long as you earn more than your TMR, you’re sufficient. Otherwise, you need to work harder or change your business.