I designed my own website. So, the major cost of startup was the inventory. ($20,000). I started the website thinking that I can work and take care of my baby. But I was wrong. I just got way too busy and now my 2 year old daughter is in daycare. I put 40+ hours into my work.
I had $0.00 in my bank account as end of last year (2 years of starting a business). I paid off all my debt by begnning of this year. I have not paid my self a single penny yet. I did over $110,000 in sales last year, and my profit was $28,000 (only in paper). (Like I said, I had $0.00 in my bank account even though, on paper, it looked like I made $28,000)
My tax accountant called me and said it's probably better if I dont' work. Because with making $28,000, we paid half of that in taxes because of our combined income (my husbands and I). So, we ended up paying $18,000 in more taxes this year than last year. We paid it with the money that I don't have from my business, but from our personal savings. And the other half of income from my business basically goes to paying daycare (which again is coming from our personal savings, not from business because I had $0.00 in my bank account as of last year).
When I first started the business, I thought that it would be so easy and I would be making profit right away. The reality is that I ended up paying taxes for money that I don't have (because all the unsold inventory by the end of year is considered an asset, and I pay tax on them).
I'm lucky that I have a husband who makes enough income to pay for our daughter's full time daycare as well as $18,000 in taxes that we had to pay this year. Though it looks like I'm doing well in my business (doing $10,000 in sales per month) and all debt paid, I have worked hard in the past two years with no income and I will only be making $2000 a month (which again, half goes to taxes, and half goes to daycare) when I do start making profit.
But I am doing what I love, my daughter loves the daycare which she started going when she was close to 2 year sold, and I have flexible hours.