July 11, 2019

How I feel about finances...in general.
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I actually don’t enjoy talking about it much either, and I can’t imagine most people enjoy reading about finances. So, I’m going to go into a little more detail with my story to hopefully make this more interesting. I don’t bring up anything specifically to gain sympathy, or to brag, so please please please don’t take it that way. It’s just part of the story.
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In May, we hit a record setting month in sales, woohoo! HOWEVER, our bank accounts didn’t look that way. This is when I REALLY learned the hard way, that just because your doing more and more in sales, doesn’t necessarily mean your business is doing well.
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If you’re spending as much (or more) than your making, it’s pretty obvious that you’re not exactly going to be rolling in the dough (most people would call that profiting). This is exactly what we did. As we have grown this year we have added expenses in attempts to push that growth. My thinking was, “If we are spending money that will help us grow, it’s okay if we aren’t profitable, because we will eventually see a return if our sales keep going up.” Wrong!
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If I can’t figure out how to be profitable now, how am I supposed to figure that out when we grow to be as big as I hope to be.
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So, we have taken a lot of steps to keep our expenses lower than our income and to become profitable. We implemented a short term strategy to increase cash flow, a “medium” term strategy with a more strict budget, and a long term strategy to implement more accurate bookkeeping to produce financial statements. (This bookkeeping has actually been something we have been working on for the past year and a half, but can be tough when you have over 1000 sku’s).
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So, this picture is actually a more accurate representation of how I used to feel about finances. I have actually really started to enjoy the planning and the structure to our money recently. We aren’t making financial decisions based purely on feel anymore, it is much more of a balance between data and feel. We still have a lot to work on, but I’m much more confident moving forward now.
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#unsuccessfulentrepreneur