Cost + ____ Indirect Cost = Wholesale

actuality, these items are examples of fixed costs directly related to each collection you produce.

Equity is the value of your business. It can be calculated by the following equation: Equity = Total Assets – Total Liabilities – Net Profits

Online Marketing – Include the fees for selling online through sites such as Etsy.com and Ebay.com. This can also include your budget for blog advertising, Google Adwords and other online marketing efforts.

I cannot stress enough how important it is to keep to your budget. It’s easy to rationalize spending just a little extra, but it can quickly become a habit. Set limits to your expenses.

What is the break even point? It is the point where your sales match your expenses. “Breaking even” does not mean you are making a profit, only that you’re not losing any money. To figure your break even point, calculate how much it costs for you to be in business each month (your direct and indirect fixed costs).

LLC or a corporation.

you need to calculate the business’ total expenses incurred for the month and then calculate the income received.

Let’s assume you are going to produce 100 pieces of one garment to fill orders that were placed, an additional 5% for damaged, plus another 10% for direct sales through your website. 100 pieces x 5% = 5 (Damaged allowance) 100 pieces x 10% = 10 (Allowance for direct sales and reorders) Your production quantity is 115 pieces.