Like many of you, I too seek the road to FI. I'm trying to decide how much time/energy/money to put into this endeavor. I enjoy most facets of the work - it is challenging and rewarding.
Short version:
You are doing fine for now.
Long version:
Knowing what your expenses are and what you need in revenue as well as actually not losing money puts you into the top group of businesses. Most business owners never get there at all. There are a few things you need to learn and understand, though:
Owning your business is not a way to get rich quickly. Yes, there are some business models where it's more likely to get rich quickly and there are businesses that make a lot of money in a short time, such as running this web site. However, be aware that this strongly influenced by survivor bias. Most blogs don't make profit. Most small businesses don't make profit. The survival rate for the first five years is pretty small, actually. Focus on surviving, not making a fortune. Your road will be rewarding, but not be a shortcut.
Secondly, there are a few things you need to learn and understand. The more you learn from mistakes others made, the better you are off. Most people need to make mistakes themselves, though.
First and most important is that revenue is a prerequisite. You need to make money in order to survive. No revenue, no business. However, it's not relevant to staying in business. I've seen a lot of clients and partners go out of business. Not one of them went out of business due to a lack of revenue. Not a single one. It was always cash flow and expenses.
Expenses are easier...
If you need $100/hour to produce something, then selling for $120 instead of $110 doubles your profit, but only increases your price by 8%. Please keep this mind when you negotiate prices. Read this sentence multiple times. It took me years before I actually understood what should be obvious.
Many of your expenses are 100% losses in revenue... Understand the difference between investments and expenses. The salary of your part time employee might look like the highest expense. However, if hers or his work is billable, then it's an investment. Your rent might look like a small expense. Be clear why you rent the space you do. Is it because your own place is too small for the equipment, because you live somewhere where you are not permitted to work, etc. Same with phone lines... Internet and phone does sound like you are paying twice. If you worry about being reachable investigate into call forwarding to your private cell phone, or look into cheap offers using voice over IP.
Money you don't spend is your profit. Just make sure you are not saving pennies, but paying dollars to do so.
Secondly, you need to keep an eye on cash flow. It doesn't matter how big a job you got and how much money you will make in the future if you can't pay your bills today. There are two things that are really hard to do as a business owner: Firing someone and saying no to a job. Both will be necessary at some point.
It's really important to keep in mind that every business size only supports jobs of a particular size. There are many opportunities that I have to ignore, because they are too small for our business, just as there are many contracts that sound exciting, but are actually too big for us. Accept the wrong job, and you're out of business.
You should always have an idea how to pay your next bills. If you don't, optimize your processes until you do, as otherwise you will end up in a situation where you have to pay, but have no idea how to.
