During the inaugural Monthly Business Support Meeting held recently, one of the questions I asked of the particpants was:
Do you know how much your business costs you per year....?
In other words....Are you aware of your actual expenses....? What it costs you to do what you do....
Based on the answers given, some 'homework' was allocated....And even though I had itemised my own expenses when I put my Business Plan together 19 months ago, I've taken the opportunity to revisit them & I thought it might be interesting to share some of them with you....For those of you 'in the biz', you may be well aware of what it costs you to operate as a Vintage Re-seller though, there might be a few expenses you hadn't considered....For those of you out there who simply adore & BUY vintage, it might be an eye opener & provide an insight into the costs we attach to our items....!
$ 365.00 Business
$ 470.00 Work
$ 600.00 Vehicle
$ 200.00 Home (Pro-rated portion of Home & Contents to cover stock)
$ 1,635.00 Sub Total
Vehicle (Commercial van):
$ 665.00 Rego
$ 1,500.00 Maintenance
$ 4,320.00 Fuel ($90.00 min p/wk x 48wks)
$ 6,485.00 Sub Total
$ 380.00 Licensing, 2nd Hand Dealers renewal
$20,000.00 Antique Mall spaces rental
$ 1,000.00 Various Markets & Fairs (Either as Vendor or Buyer)
$ 1,200.00 Online selling (Based on fees generated THIS month alone x 12mnths)
$ 380.00 Accountant
$22,960.00 Sub Total
$ 3,564.00 Additional storage required to house stock
$ 3,564.00 Sub Total
Working from home:
$ 840.00 Internet
$ 295.00 Water
$ 580.00 Electricity
$ 1200.00 Consumables - Hardware & cleaning
$ 400.00 Consumables - Stationery supplies
$ 3,315.00 Sub Total
** NB: Water usage - Based on additional water used during my businesses first financial year (adjusted for suppliers price increase) compared to when I was employed in the city....I'm PROUD to be able to report our home STILL uses LESS than the 150 litre p/day p/person recommended water usage set during the drought....!!!!!
** NB: Elecricity - 'As above'....Power tools, internet, additional lighting used etc.
$37,959.00 TOTAL - BEFORE stock, buying trips & costs associated with organising the SVJ-Extravaganza....!!
Just like a household budget, I'm constantly tweaking, editing & trying to find CHEAPER alternatives be it stock, internet supplier what have you....!!
Each month I 'forecast' sales & pay my expenses accordingly, though sometimes it's a matter of juggling & robbing Peter to pay Paul....Now this is not noted to illicit sympathy....I ADORE what I do....I LOVE being my OWN Manager....I left a WELL paying job in the city to do what do....I'm simply saying it as it is & hoping perhaps to provide food for thought to those of you contemplating moving your passion from a hobby to a business or for those of you considering buying one of my Treasures....The majority of Vintage Re-Sellers are in this business purely for the lifestyle i.e. Being our own boss, choosing our own hours....We do this because we LOVE it....I certainly don't expect to EVER earn what I was earning when I was shackled to a desk 9-5....But I WOULD really like it one day if I was able to pay myself a wage & take a holiday....
Now have I mentioned lately I've reopened my Etsy Shop & have items listed on eBay....hahahahahaSNORT**wink**....??!!
I hope you're all having a SPLENDID week....!