I could not reach BEP until I realized that I could lower the expected wage…. I knew this would be the case; however, I stubbornly thought that I could not change the expected wage. This is the same mistake a lot of entrepreneurs make. We typically have unrealistic expectations regarding the amount of money we expect. We base the amount on what we “think” we should make or we base our expectations on what we perceive to be the salary of most entrepreneurs. We tend to believe that small business owners make more money than they actually make. We enter the business with those expectations and we fail. We do not realize that we should include some of our salary in the startup costs, especially when the amount is required. This also shows me the importance of including your cost of living income in startup costs. This gives the startup entrepreneur a more realistic picture of costs.
When completing the profit and loss module, I was made aware of the difficulty of predicting expenses for a startup. Hidden costs do not show up when planning the business. They typically show up after the planning process and are difficult to notice. This means that hidden costs must be continuously evaluated and revised as you manage your small business. If you do not keep up with hidden costs, your sales predictions can be met or exceeded; however, you profit will not increase and in many cases you would actually lose money.
The technology skills module is difficult to complete because it only allows for one way to complete each tasks. This is probably the shortest way; however, I am accustomed to “right clicking” to do most tasks. The module will also “freeze” if you do not hit “Enter” after completing the last task.