May Tips: Know Your CODB

If you have your own business venture, or even a small hobby that generates some steady income, then you must know your Cost of Doing Business (CODB). CODB is pretty self-explanatory – it’s the money you must bring in for your business to be sustainable. Essentially, it’s your break even point for the time you spend and hard costs on the services or products that you are trying to generate a profit on. If you’ve gone ahead on a business plan without actually taking the time to figure out your CODB, you might be headed for trouble. It will do you no good if you find out after a short (or worse long) period of time that your great new business venture is actually costing you money instead of making it! You can find your CODB by adding all the small and large items it takes to run your business – everything from internet fees to paper products, business cards to marketing material, travel and more. Before beginning any new venture be sure you tackle this!