Business Techniques #3

It’s so interesting to see how different sellers manage their profits! Everyone that I’ve talked to so far has a different technique and I’m learning a lot from their stories.

The next successful Etsy artist I chatted with was Kitty Cross Bones, you might remember her from her “Quit Your Day Job” article in the Storque…yeah. Lucky bum, hey? Here’s how this girly answered my question.

Q: What is your formula for your earnings? How do you work out how much to put back into the business and how much to save?

A: My earnings would be Sales – fees= net income – supplies = profit. I only put back into the biz when I run out of supplies so anything after that would be saved. I actually don’t have an exact formula as in depth as the other sellers on your blog. I don’t charge for my design or setup fees. Mainly the product would be calculated for parts+labor. Sometimes I work about 18hr days in the studio.

When I first started out selling, I was actually putting my personal savings into it from my day job (which I recently quit last year due to my Etsy success) I was in the hole, so to say, before biz started to pick up.

You asked how do I know how much money to spend on the biz and how much to save? So when I run out of supplies I will reorder them. I buy in bulk so the price is low and whatever is leftover after spending from supplies I put that into my savings account and then pay my credit card bills with it…

 

There’s so many different ways to manage your money! And it must be successful, Kitty’s quit her day job…and all the other successful Etsy Artists I’ve interviewed are super successfull too!

This series is really giving me food for thought. How should I manage my finances? What theory works best with my needs and wants? It’s a hard call, since I’m still just getting started, and it’s so great to have all this advice from sellers who have made it!

They keep coming…

                               

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