Q-03Money
I am busy but not making money
Sales are coming in, and there is still nothing left at the end of the month.
This is nearly always one of three things: the price does not cover the true cost, money is leaving the business unrecorded, or customers owe you. You can find out which in a week, with a notebook.
4 things to look at
- Price below cost. Transport, packaging, airtime and your own time were left out.
- Leaks. Cash taken for home, stock given away or spoiled, small costs nobody writes down.
- Credit. You have made the sale and have not been paid.
- The wrong mix. Your busiest product is not your most profitable one.
Checks you can do yourself
These cost nothing but time. Do them in order. If they answer the question, you do not need us.
Cost your best seller properly
Everything that goes into one unit: stock, transport, packaging, airtime, and a wage for your time. Use the costing sheet.
Write down every dollar in and out for seven days
Every sale and every expense, on the day, including money taken for home. Print the cash book page.
List who owes you
Name, amount and how long. Add it up. This is your money sitting in someone else's pocket.
Keep business and personal money apart for one month
Two wallets, two envelopes or two accounts. Pay yourself a set amount on a set day.
Find your best and worst earners
For each product, work out what you make per hour of your time. Many owners find one item carries the business and another quietly loses money.
- You have done the seven days and the numbers still do not add up.
- You sell many different things and cannot tell which ones pay.
- You are thinking of borrowing to cover the gap.
- You want to raise prices and fear losing customers.
Costing and Pricing
Know what one unit costs you before you decide what to charge for it.
N$699
Related questions people ask
Should I just sell more?
Not until you know your cost. If each sale loses a little, selling more loses more.
Customers say my prices are already high.
Some will. The question is whether enough customers will pay a price that covers your cost. If not, the answer is to change the cost or the offer, not to carry the loss yourself.
Tell us what you are trying to decide.
You do not need a business plan to talk to us. Say what the business is, what you want from it and what is in the way. A Business Check-up costs N$199 and comes off any other service you book within 30 days.