Net income reflects the business's profit or loss. Your net income will give insight into the total profit your business has made at the end of a business period.
To calculate net income, you will need to know the revenue and expenses for a certain timeline. At the early stages of a small and growing business, the net income may indicate a loss. Why? Let's analyze the expenses and revenue, then the reason for the loss in the early days of a business becomes clear.
Revenues refer to sales and other generated income for a business. While Expenses connote the costs of running the business to generate income.
Since a business spends more at the start, those periods may reflect negative numbers; the business has more expenses than revenues. As the business grows, the narrative should change.