How about that bottom line?
That one gets the shaft.
It’s the line that tells us that we spent too much, or that we paid too much for that show with the splashy top line numbers. It’s the line that shows our time spent reconciling our receipts.
It’s not the happiest of numbers.
Here’s the good news – we have a lot of control over how we see that bottom line, and we have a lot of control over how that bottom line can grow into a happier number.
Let’s examine, shall we?
Here is a short list of what impacts your bottom line:
If you’ve been following me for a while, you know that pricing is my favorite topic. I created a whole eCourse about it just for jewelry designers because I am passionate about designers charging what they are worth.
It also directly impacts your bottom line – price too low and your profit margin tanks.
Price too high and your followers won’t follow you anymore.
Price just right and your jewelry sells and then each piece pays you more. It’s a delicate balance that takes finesse and math.
Why does production influence your bottom line?
Spending too much time on projects that don’t bring in enough money, or projects and processes that are inefficient, means that you lose out on the ability to take on high-dollar projects.
Could your less expensive pieces be outsourced to another producer?
Could you find more efficient ways to make these pieces?
Could you discontinue them altogether?
If you take less time to make the less expensive pieces, you’ll have more time to focus on the big ticket jewelry.
A solid and scrappy marketing plan can improve both your top and bottom line. Placing your marketing efforts and dollars in the right places means more sales, but with less money going out the door.
Email marketing is (for the most part) low cost or free, but it helps keep your loyal customers loyal, and it keeps your brand top-of-mind.
Social media is, well, problematic, but it still helps people discover your brand. It costs you time, but little to no money.
Using as many free avenues to promote your work means that your earnings go so much farther.
A solid marketing plan can also help you weather harder financial times and slow times in business by helping you stay focused, helping your customers find you and, again, keeping you top-of-mind.
I mean, this is the big one, right?
In my business, I have needs and wants.
I need data back-ups, printer paper, shipping labels, and printer ink.
I didn’t need a new plant (I wanted a new plant though, so I consulted my budget first), I don’t need a new ring light (yet), and I don’t need to vend at a show without doing thorough homework first.
And this is why doing a deep dive on your budget is important.
Taking a hard look at your budget is how you’ll find where all of the money is leaking out of your business. It’s also the only way to learn how to plug the leaks.
Your budget is the secret sauce that helps you make decisions. We tend to see it as the unpleasant side of running a business. It is less sexy, less exciting, but it is where the magic happens.
Retooling your budget can help you profit more, pay yourself more, and have more money to put towards the growth of your business. This is the ultimate turn-that-frown-upside-down action that makes your bottom line more robust and plentiful.
Need help with just pricing? Here’s my eCourse on pricing your jewelry to purchase and download.
Seeking an all-of-the-above answer? Book your free discovery call for The Profitable Jeweler!