How does a small business make money?
Cookie Math
How does a small business make money?
Let's say you wake up one morning and decide: I'm going to start a bakery. You love making cookies, and people keep saying yours are the best they've ever tasted. But wanting to run a bakery and actually making money from it? Those are two completely different puzzles.
First, you need money to get started — this is called capital. You buy an oven, rent a tiny shop space, purchase flour and sugar and chocolate chips. Let's say all of that costs you $5,000. That money goes OUT before a single cookie is sold. You're $5,000 in the hole on day one.
