One of my major goals for 2010 is to focus more on the numbers behind my business. As in diligently keeping up with my record keeping, analyzing my sales, and figuring out how to maximize profits. I’ll take a cold hard look at ROI (return on investment) and think about ways to up my ADS (average dollar per sale) and the conversion rate on my website. (The percentage of visitors who actually buy something.) I’ll be generating regular sales reports, and maybe even a profit and loss statement or two.
Now, before you think I’m turning into some greedy, money-loving, wannabe executive, let me tell you why you should do the same:
If you’re anything like me, you started a craft-based business because you care about more than the bottom line. Maybe you want to live out your dream, or spend your days somewhere other than a cubicle. Maybe you believe in the power of small, local businesses to improve the community and change the world. Maybe you want to provide a decent living for your family, or an employee or two, or support worthwhile causes.
Well, let me let you in on a little secret. You cannot do any of these things if you are not profitable.
Trust me, I’m not advocating that you give up everything you value for a cut-throat pursuit of higher profits. (Far from it!) What I’m suggesting is, if you aren’t taking a cold hard look at your bottom line, now is the time to start! The new year is the perfect time to think about straightening out your finances (it is the start of the fiscal year) so that your business can achieve all those wonderful goals you’ve set for it.
So pick a bookkeeping system that works for you, maybe give your accountant a call, inventory the work you’ve got on hand, and start keeping track of those sales. (And no, just looking at them on Etsy doesn’t count.) You can be sure I’ll be doing the same – not to mention sharing my own number crunching experiences with you here.
So, how ’bout it? Do you have any number-related goals for 2010?