Do you know your operational costs?
Odds are you just answered, "What?"
Let's just break this down simply.
If you don't know every single penny spent on your business per month, you are essentially already out of business.
Don't worry! Let's just work this out and get you back on track. Ready?
This is the part that sucks. Like- really sucks!
You need to list out every single expense for your business. Just when you think you're done, go and do it again. There is always something you are forgetting. Think about annual costs (domains, website hosting fees, software, etc)
Don't worry! We will wait.
Once this part is over, life gets better.
A lot of what you're doing is finding rough estimates. This will help you cut costs (because you are going to finally realize you are still paying $99 for outdated software you no longer use) as well.
Doesn't it feel nice?
You will find an average price of variables like shipping. (Ex. If we made $2500 in sales, we usually spent about $400 on shipping alone) This gives you a % variable, meaning that no matter how much your sales increase, you know that the shipping cost will be approximately 16% .
Remember when you learned to cross multiply and told your teacher you will never use this in the real world............
Knowing these numbers will help tremendously in scaling and staying within your means of operations.
If you aren't already making sales goals, you're crazy! Do it NOW! Even if your business is brand new- throw a number out and push to attain it.
Knowing your bottom operational cost means that even when the market tightens, you are sure that your business will survive because you have taken the blindfold off and know the exact cost to "float your business".
If you find that you just absolutely hate all of this and want extra help-