ABSTRACT
A basic understanding of the relationship between revenue, expenses and profit will help creative entrepreneurs to avoid costly business mistakes. Everyone knows that price is what is charged for the product. If price is multiplied by the number of items sold, total revenue is calculated. Profit is calculated by taking the revenue, money received from customers, and subtracting the expenses incurred by the business. Getting the cash to start a business is a challenge for everyone. However, there are now new online funding sources such as peer-to-peer loans. More attention must be paid to marketing so that sales will increase and the actual revenue numbers will match the budgeted. The creative entrepreneur may be able to barter for services, such as tax preparation, in exchange for a product. Learning budgeting skills will help to ensure that the creative entrepreneur will always have the cash to pay bills.
