๐Ÿƒ Wonderleaf

A Wonderleaf question

How does a small business make money?

How does a small business make money?

a real page from the book

A small business makes money when customers pay more for its goods or services than the owner pays to create and run them. Sales bring cash in; rent, supplies, wages, repairs, and taxes send cash out. What is left is profit, and enough steady profit keeps the business alive.

The tricky part is that owners often spend before the first customer arrives. A baker may need equipment, ingredients, and a place to work, then slowly earn that starting money back. Each choice has a trade: save cash today, or spend it carefully so tomorrow's shop can serve more people.

Wonder words

  • capital
  • revenue
  • profit
  • investment

Try it out

Pick a pretend product, choose a price, list three costs, and work out how many sales would leave money left over.

Read the whole picture book

Watercolour scenes, straight answers, about three minutes cover to cover.

Open the picture book

One more wonder: Why is space so dark?

And the next question?

Ask anything โ€” Wonderleaf writes and illustrates a picture book for it. That's the whole idea.

Ask your own question

The next wonder, by email

A new question goes up every Sunday evening. We email it to you Monday morning, free to read that week.

One wonder a week, nothing else, ever. Unsubscribe in one click.