It’s so common for people talking about business matters to refer to the “bottom line”—as in, “How does this decision affect our bottom line?” Or “After the expenses and revenue have been tallied, what’s the bottom line?” While it sounds terribly efficient and business-y, when you’re running a business from your home while raising a family and possibly working a more traditional job too, what does “bottom line” actually mean?
Traditionally, “bottom line” is a term restricted to financial concerns. But, as we’ve discussed and determined here in the Home Business blog, those of us who operate our home business are not only concerned with the financial aspect. Other issues such as flexible time, ability to care for children and home, control over our efforts, not having to attend meetings or work in a traditional environment, and a myriad other benefits and realities affect our satisfaction level with our home businesses. It may be hard for us to focus on “the bottom line.”
Not to mention, building a business takes time! It is completely common for entrepreneurial efforts to operate at a loss for the first several months or so (or even years). Home businesses are no exception. When you are starting completely from scratch, it takes time to build a loyal customer base, nurture and cultivate prospects, and organize your business so it begins to make money and turn a profit. Focusing exclusively on the bottom line too early can bring about discouragement and a premature ending to a business with potential.
So, when you’re evaluating your home business’ bottom line, you may need to take into account several factors—including the overall financial picture. Having a long-term plan and a workable budget can help you stay on track, working toward solvency, during those fledgling months of building up the business. But, you’ll likely have more daily concerns than just the “bottom line.”