Back when we first started our CNC machining endeavor, it was just me in my garage with a Tormach 1100!
Business was simple: I bought raw material, I machined it and I sold products and performed job shop work. With no employees and no rent, overhead was non-existent! We bought material and tools as needed for jobs, so there was no inventory or working capital being tied up.
Fast forward ten years, and we have grown into a typical American small business with a shop (rent!), employees (payroll!), and the need to keep on hand a fair amount of both raw material and finished goods (working capital!).
This has led to some confusing months from an income statement perspective – e.g. why the heck does it seem like sales are good but we aren’t “making money?"
Tune in to our live stream where we discussed budgeting, tracking expenses, types of costs, and how to get paid!