Since line 7 of the 1040 comes from line 9 of SCH 1, that could be reflecting more than only SCH C income. So that's why you have to actually look at the SCH 1 to see what items that figure is from, as it may not be only the SCH C business income.
But for a SCH C business, is is no uncommon for such a business to show a loss in it's first year of operation. It's also not at all uncommon for the business to show a loss for it's first 3 years of operation either. It just depends on exactly what your SCH C business is.
