Are you ready to make the leap from a home jewelry hobby to running your own jewelry business? What are you waiting for?!
It can seem overwhelming but with clear goals and a bit of elbow grease, you will be running a successful business in no time. With 30 years of experience, I have made every mistake in the book. In 10 STEPS I will help you avoid those pitfalls while passing on the tips and advice that have helped my business grow.
STEP 1: Book Keeping
Book Keeping is the main difference between a hobby and a business.
Invest in a professional book keeper from the get-go. Have her help you set up your books correctly and walk you through the process so that you truly understand everything you need to record in order to track all of your income and expenses in a way that will satisfy the IRS.
Accountants are not Book Keepers! But your accountant can probably recommend one and you can & should have your accountant review your books regularly to confirm compliance and help you understand if you are making a profit or losing money because that is not as straightforward or obvious as it seems.
Take the time to learn how to read basic financial statements and understand a few key concepts including the ones listed here: Profit & Loss Statement (P&L), Balance Sheet, Return on Investment (ROI), Gross Profit vs. Net Profit, Break Even Point, Profit Margins, Cash Flow, Variable vs. Fixed Costs, Cost of Goods Sold or CGS
Fully understanding your personal and business finances is an important part of running a successful business.
Stayed tuned for next month’s post. I will explore more business tips including how to cut through the Red Tape that small business owners face.
Interested in more business advice? Our friends at Interweave were kind enough to let me hold my own webinar on jewelry business tips. You can purchase my recent webinar here.
