For the majority of us in Leathercraft, we absolutely love what we do. But, if you are like me, you probably don’t love working on the financial side of your business. If you want to strengthen your business, then the financial aspect of the business has to be discussed.
Tell me if this sounds familiar to you in your life or your business:
You have been working hard on a big project and you are wrapping it up. Oh boy, now time to have it picked up and get that big check and feel the relief of cash flow coming into your business. Time to pay yourself and payoff those material bills that you have been piling up over the course of this project. Happy Days!
After the customer leaves with his beautiful project in his hands and his check in your hands, you feel a sense of accomplishment. You know that you have lived to fight another day and your shop thanks you.
After the deposit is made into your bank account and all the checks to your suppliers are written and mailed out, you now look to see what great amount you will be “taking home” to enjoy.
Suddenly you realize looking at your account and books that you have very little, or none, left for yourself. WHAT? How can that be?
“I bid the job correctly… I think.”
“I didn’t buy more material than I needed for this job… did I?”
“I should have more money than this, what happened?” Continue reading