When you build a business, you will have different motivations. Some jpeople are in business because they want to be of service to people: to offer products and services that they believe will make their lives better. Some people build a business because they would rather be their own boss and not answer to someone else. They want to be in charge—they do not want to be a mere employee, so they build a business.

Most people build a business to earn. People work for the profit and when you make a decision to build company, you want be able to earn back your capital. You want to earn enough money to sustain your life, so working your way around all the money stuff is going to be very important. Moreover, it is important that you are able to keep a close eye on things and you know how to handle the financial aspect of the business:

• Remember how much capital you set out. In the beginning of the business, you spent an amount of money to set up the business and you either you had the entire sum tucked inside your bank account, worked with financial investors or took up a loan. You need capital to keep things going and to keep an eye on things and to make sure that you are able to reclaim everything you spent, you need to know your capital.
• Price your products and services accordingly. In business, you can price your products and services high or low. There are advantages to both: setting things at high price means heightened earnings and setting things low will mean they will be more enticing to consumers, thus encouraging increased revenues. When thinking of giving discounts or hiking up your prices, you can determine things by properly computing for mark-up percentage, usually around 25% of original cost.
• Watch your expenses. In business, money will be moving in two directions. There is money that is going in and there is money that is coming out. This influx and outflux of money should be somehow balanced—you cannot be spending so much more than you make and it would be best if the income is overcome by the company’s expenses. In other words, if the company is not making enough money it has no business being in operation.
• Gross income and net profit. Gross income is the total amount of revenue that the business is getting before expenses are covered. Once the expenses have been made, the money left behind is what is referred to as net income and this is money that can be taken home.