If you are REALLY tracking all of your business expenses, you are able to get a good handle on whether or not your business is really profitable – meaning it can not only pay all of it’s expenses but put some cash back into your pocket. Tracking your expenses answers questions like “ Am I really making money at the end of the day (month or year)“? When you are selling finished items, it might feel like you are raking in the bucks, BUT if you are only subtracting the cost of your supplies from that income, you may feel like your business is successful – but then end up wondering WHY you bank account isn’t showing that because it’s either in the hole or darned close to it and you need to take MORE money from your personal accounts to cover costs. ![]() ![]() When you do this – you are definitely under-pricing yourself and your business won’t stay afloat, unless you have unlimited money to keep investing (putting into) your business -and I doubt that many of us do. Many new handmade business owners often make the mistake of only including what it actually cost them to make their finished items, and maybe a few bucks for themselves. When you decide to make the move to becoming a professional handmade business, well everything changes – as it should.Īs a business, what you spend impacts the pricing of your finished items – Oh My God (OMG)! That’s right – much of the money you spend on your business needs to be included when it comes to product pricing. When you are a hobbiest, you really don’t have to keep track of a lot of things – except for maybe how much your spending impacts the family budget. Keeping track of expenses for your handmade business is one of the most important things you can do for yourself and your newfound business.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |