Wednesday, June 9, 2010

Making a profit and danger signs.

Warning. I'm planning to start making a profit this July, and from then on.

I've been preparing this for months. Getting the store fully stocked at the same time as paying off all the bills. Running a business really is like turning an ocean liner in the middle of a canal; it can take months, even years to prepare.

So that's great, right?

I'm finally ready. One more week and we start the July billing period; from then on, I need to match last year's average and stick to my budget.

Hey, I should be encouraged, right?

Here's the thing. I've done this about half a dozen times over the years. I've worked and worked and prepared, got the store completely under control, and said: "HERE, this (future date) is when I'll start to become profitable."

The day comes --- and the future recedes. For example, I decided that September, 2001 was great time to get going....Heh. Sept, 2007 was another moment; and Sept, 2008, and so on....

After having this happen so many times, I've decided this can't just be an accident. It isn't just bad luck, or selective perception, or superstition. It's a real phenomenon. Something about my impulse to pick a certain date, and my ability to prepare, is connected to the overall economy in ways I can't quite fathom.

So, I give you fair warning. I'm planning to start turning a good profit on July 1, so the chances of a meteor strike have just gone up dramatically.....

5 comments:

Duncan McGeary said...

I have, of course, been turning a 'profit' this whole time -- in the sense that I take home a living wage and pay my bills and the IRS charges me a tax and all that.

I'm talking over and above the basics. Real money, that can be stuck in a bank.

Unknown said...

Well good for you my friend. I certainly wish I could spend more money in your store but sadly I'm making intern wages. Will be looking for the prognosis. Interesting to see what will happen with comic sales now that events seem to have taken a back seat for the rest of the year. Events always seem a little counter productive and only to appeal to fanboys.

Duncan McGeary said...

Thanks, Jack.

I hadn't thought of that 'events' thing, but you're right.

Duncan McGeary said...

This profit thingie hinges on two things;

Budget.

Sales.

On the budget, I'm pretty much at a nice moderate overhead level, allowing me to have employees in the store about half the week, and still being under a cap.

The real challenge on the budget is that I DON'T have one of my blowouts. I was good for most of the last six months -- in fact, the budget starting in July will actually be higher.

But I had a couple days in mid-March where I went crazy. Sales were really good in March, and I thought I could take advantage of some deals.

So I spent thousands I shouldn't have, and have been recouping ever since -- in months that have actually been kind of slow.

So, above all, I have to avoid that 'blowout' moment.

I've been relatively good over the last three or four years, because of the economy. It's easier for me to be focused and disciplined when sales are poor. The challenge for me is to not let up when I have a few good days, weeks or even months.

Stick to budget, dammit!


Sales?

Ironically, my 'preparation', if you will, for profits in Sept.'s of both 2008 and 2009, were good preparations for a downturn. I may not have made much money, but I didn't lose any either.

So barring a calamity; I think sales are relatively predictable right now, within 5% either direction, which I can adjust to. Even a downturn can be compensated for, to some extent.

So stick to budget and hope for the best....

Bewert said...

July makes a lot more sense then September for such a striving. Good luck.