I see this all the time. People go into business and start spending money and they have no idea if they are profitable or not. Experts claim that most new businesses fail because they are undercapitalized that may be true for brick and mortar businesses. But I am willing to bet that most new businesses fail because they dont understand their expenses and have no idea hot to track their cash flow. At first you can track your expenses on an Excel worksheet. Just put down the money coming in, in the left hand column and list your expenses in the right hand column. When the total of the left hand column is greater than the right, then you are making money. If after a while you are not making money, start looking at the expenses in the right hand column and figure out which ones you can eliminate or reduce.