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

To do a financial projection, you need to make reasonable assumptions on how many sales you will have, how many stores will carry your merchandise, and how you plan on reaching these goals. Create a timeline of your goals to make them realistic and within reach. Set marketing, advertising and trade show goals. This will help you achieve a visual

Candice Gwinn owns and operates Trashy Diva

Utilities – Figure these for any rented space, as well as your home office if you have one. You will figure the percentage your office takes up in your home and calculate your costs based on it. Utilities include gas, electric, water, telephone and internet. Budget for any designated phone or fax lines for your business, and your cell phone. You

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depreciated anywhere from 3 to 15 years. This also means you won’t be able to claim it on your taxes in one lump sum. You will need to check with your accountant to determine how to deal with these items. For calculation purposes only, we will use 15 years for depreciation and 30 years for start-up costs. These expenses become part of your indirect

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.

This statement is named the balance sheet because your Current assets equal your Liabilities and Capital.

How can you measure your profitability? Subtract “expenses” and “fees for your services” from your total “sales.”