A regular financial check-in can help you understand what’s working, what’s costing too much and where those golden opportunities might be hiding.
Let’s be honest. Most makers didn’t start their business for the love of freaking spreadsheets.
Whether you’re stitching, sketching or soldering, knowing your numbers is just as important as knowing your materials. Evaluating your finances might not sound like the most thrilling task, but it is one of the smartest things you can do for the long-term success of your creative business.
Ready to take the guesswork out of your money matters?
Here are five easy ways to start.
1. Get cosy with your income
Start by looking at all the ways your business brings in money.
This includes product sales, market stalls, workshops, wholesale orders and anything else that sends funds your way. Which income streams are performing best? Are there any surprising little earners you had not noticed before? You might spot patterns, like a quiet winter season or a product range that’s becoming a bestseller. This is your chance to celebrate what’s working and have a little rethink around what is not.
2. Track your spending (yes, all of it)
It might not be as fun as buying new supplies, but tracking every expense gives you the full picture.
Break it down into categories like materials, packaging, subscriptions, market fees and postage. Look back over the last six months and note any surprises. That monthly app you forgot about? The eco-wrap that adds up faster than expected? Once you know where your money is going, you can decide where it actually needs to go.
3. Calculate your profit margins
This one is SUPER important. Profit margin is the difference between what it costs to make something and what you sell it for. If your margin is too slim, you might be working a lot harder than necessary for not much reward. Be honest with yourself. Are your prices covering the cost of your time, materials and overheads? If not, it might be time to adjust your pricing or find more efficient ways to produce your products.
4. Find ways to save
Once you have visibility on your spending, you can look for easy wins.
Could you order materials in bulk? Switch to a more cost-effective shipping provider? Share a market stall with another maker? Small savings add up over time and can boost your bottom line without raising your prices.
5. Set a financial goal
Evaluating your finances should not just be about cutting costs. It is also about growth. Set a financial goal that excites you. Maybe it is hitting a monthly revenue target, saving for a new piece of equipment or being able to pay yourself a steady wage. Once you know your goal, you can work backwards and plan the steps to get there.
Understanding your finances is not about being perfect with numbers. It is about being in control.
With a clearer picture of your income, expenses and profit, you can make smarter decisions, reduce stress and build a business that supports you as much as you support it.
So, grab a cuppa, open your notebook or spreadsheet and start counting those coins. You’ve got this.
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