Entrepreneurship

Pricing and profit for new business owners

Revenue is not profit. A simple framework for pricing that covers taxes, overhead, and your own pay.

MWFS Education Team · Published Feb 16, 2026 · 8 min read

Many new owners price against their competitors and then discover the number never covered their actual cost of delivering the work.

Build the price from the bottom up

Direct cost: materials, subcontractors, transaction fees.
Time cost: your hours at a rate you would actually accept.
Overhead share: software, insurance, marketing, workspace.
Tax reserve: a percentage set aside on every sale.
Profit: the margin that funds growth, not just survival.

Raise the floor before you chase volume

Doubling the volume of unprofitable work doubles the loss. When the unit is profitable, growth compounds. Review pricing at least annually and whenever your input costs change.

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