My Third Year as a Solo Developer
Congrats Michael! Great to see the success with TinyPilot, glad it&#x27;s working well for you.<p>Just some questions&#x2F;thoughts about your revenue&#x2F;expenses breakdown: sales is sales of course, but what does <i>materials</i> mean? Is it the cost-of-materials-for-what-you-sold, or cost-of-everything-you-bought (including <i>both</i> sold items and inventory you&#x27;re still holding?)<p>The reason is that it&#x27;s usually more common to only count the former (cost of materials for what you sold) when tracking profit&#x2F;loss. Materials you used for inventory that are not yet sold are counted as assets on your balance sheet, since the expectation is that you&#x27;ll be able to turn that into cash at some point.<p>The other practical reason (besides the potential benefit of seeing &quot;profit&quot; in your revenue&#x2F;expenses breakdown) is that you can better see:<p>1. If you need to raise prices (and I&#x27;m sure patio11 would say &quot;yes&quot;)<p>2. How to handle your inventory, especially if there is a shelf-life. Eg: doing a sale to clear things quickly, or when you need to invest in more materials to build more inventory. You&#x27;ll start tracking &quot;turn&quot;, how quickly you sell out an existing batch, and can better plan for purchasing more to keep a healthy level that is in that Goldilocks-zone of enough-to-fulfill-orders-quickly, but less than holding too much that ties up cash.<p>Congrats again and looking forward to the next update.