Does All Of The Money From Each Sale Go Straight Into My Pocket?

Does all money that people pay for a lip balm go straight into my pocket? I had this conversation with my kids recently and spoiler, but they were kind of bummed out by the end of it!

There are a lot of expenses associated with running a business and most of what we make actually goes toward covering those. First, there are the materials that we need to make the ingredients, the labels, and the tubes. We have to make sure that we cover all those costs as well as the labor for the time it takes for a person to make the lip balm.

But we also need to cover all the other costs that aren't directly related to making the lip balm. Like rent, utilities, and salaries for employees who pick and pack orders or do customer service. There are fees to keep our website running, and fees to process transactions, too.  We have payments for equipment loans, bookkeeping fees, phone bill, internet bill… You get the picture!