Friday, May 14, 2021

Looking Out For Small Business

In the wake of the pandemic, many jobs have been lost or transformed to comply with the need for social distancing. It has proven which jobs are essential and which are less so. It has shown that being present in an office is more for appearances than necessity.

Another thing that has come from the change in the job market is an increase in small businesses and side enterprises. Though the catalyst is no ideal, I like that people have been pushed to evaluate their goals and take the risk to start perusing things that they are passionate about.

I found found so many wonderful small businesses lately. I have recently become obsessed with Etsy, especially things like stickers and pins made by artists. There is a huge variety of incredible fan art (my personal favorite) and original art to be found there.

Now that safety measures have slackened a bit, I see companies being able to expand or take off again, too. I am particularly thrilled to find new companies for food products. Of course, this includes restaurants and shops locally, but also online companies that ship their treats. These are what most of my spending money goes to.

I have also been doing some selling of my own. I wouldn't quite classify my operation as a small business, yet. But someday, who knows. I do still require many of the same support and systems that most small business require. I need to manage areas such as storage and overhead, packing and shipping services, transaction fees, and cost of goods.

I am one of the least organized people you could ever meet, and oh so forgetful, so keeping track of these details on my own is not the easiest thing for me. I have considered using a service to manage these metrics and help me make sense of them. In my research, Common Thread Collective stood out as an ideal choice. 

What I really like about this service is that instead of trying to sell you on a bunch of grand ideas or additional options it actually shows you where it is practical to scale back and use less or do without. This helps ensure the best profits. If managed correctly, you can turn higher profits while pulling the same revenue. That is where CTC comes in.

With higher profit to revenue margins, you can work on growing your business, and increasing the overall revenue. Also, for the most part, the larger you can expand your business, the higher the profit to cost ratio becomes. Take buying in bulk as an example. The unit price for Cost of Goods Sold becomes lower the more you purchase at once. The same method can be applied to shipping costs and packing materials, etc.

Yes, you have to spend money to make money, but the more you have the less it takes. Business is tricky that way. Advertising is another good example, when your business is well known, you can afford to spend less on advertising. Now, obviously, a lot of companies still spend more, but none of us are going to become the next huge soft drink corporation, so it is sufficient to roll back advertising when you become more well recognized. 

Of course, the biggest necessity for any business, big or small, is to be passionate and to believe in yourself. I believe in you.

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