The question I would ask is “How did you arrive at your selling price?” Is it high enough to actually allow for growth of your business? The Harvard School of Business has a wonderful tool for calculating your percentage of markup based upon your acquisition cost for an item. Might be worth checking your selling price with this tool.
---The older we get, the more excuses we make for not chasing after our dreams. But truth is, goals are attainable at any age.
Hey all, I hope someone can help me with my issue.
I stated a business selling a product that I basically buy from individuals and resell online and to some other small companies. I started out just purchasing a few hundred dollars worth of product a week and doubling my money.
My biggest expense is advertising in the newspaper and also online.
I did not have any starting capital and just used my personal money i have in the bank.
So here is my problem.
I generat about $10,000-$12,000 a month in sales. My cost to purchase the product is about $4,000 a month and my expenses are around $1,500.
Well as soon as I make my profit I have to use the money to buy more product.
What can I do to build up some capital?