January 2012 Balance Sheet

January wasn’t the best way to start off the year, as you can see below, but I did get the underlying structure of the business settled into place, so it wasn’t a total wash.

I have the rest of the year left for things to sort themselves into working order, so there’s lots of room for mistakes and wild tangents. I just need to remember to learn from my mistakes and it should be shiny…

So onto the carnage! (more…)

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Planning for Overhead Costs

One of the things people often forget when thinking about starting a crafting business is the overhead costs.

Overhead costs are those costs not tied directly to a single art or writing project. In a normal brick and mortar business these would be things like rent, utilities, and administrative salaries. They are all bills that have to be paid, but folks don’t always remember to figure them into the sales prices! (more…)

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Calculating Model Horse Body Costs

Because I use project costing to calculate COGS (Cost of Goods Sold) for the model horse customs, my micro-business is responsible for keeping track of the cost of the individual finished and average unfinished inventory costs.

Now that my first ‘body order’ has come in, it’s on to the fun part of breaking out how much of the invoice total is associated with each of the model horse bodies. For molds that have multiple base costs, I average them together instead of going through the headache of labeling each body. (more…)

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January Stablemate Body Replacement Costs

Even though I am tracking the average costs of each model horse body that I buy (details to follow) I use the Replacement Cost to calculate the body costs for custom orders and for bringing in stock from my own personal collection.

Replacement costs are calculated from what it would cost me to buy a specific mold at retail (market value). Since I use these to figure out the ‘body cost’ portion of each sales listing, I will be updating these at the end of each month in order to keep the prices current. (more…)

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