Starting a small business is a rewarding and (sometimes) tiresome experience. Finding vendors, obtaining a business license and coming up with the money are not easy feats, but once you see your dream turn to reality, it gives you a sense of accomplishment that some may describe as illuminating. Unfortunately, starting a small business is not all fairies and unicorns, especially when it comes to maintaining and marketing your business and sometimes, difficult lessons are learned in the process.
To end the year, Cays to Coins decided to kill two birds with one stone and interviewed five Bahamian small business owners to:
- Get an understanding of some of the many lessons they have learned during 2021; and
- Give our readers last minute Christmas shopping ideas for local, budget friendly gifts.
Lesson #1: Understand the difference between fast moving and slow moving inventory – and try not to lose liquidity by buying into deals that require stocking up on too many inventory items.
This lesson was brought to you by Melissa McCartney, owner of Earth Tuitive, an eco-conscious company that operates as an online retail business, making buying sustainable products easier by doing all of the research and curating for the consumer.
Melissa’s biggest financial lesson of 2021 is:
Test the market over a period of time to determine slow moving versus fast moving products and invest in the fast moving inventory items. A lesson learnt was to resist tying up funds on inventory that seemed to be a “good deal” because the supplier was offering the product at a really low price – [usually, suppliers request that you purchase a high volume of products to get the deal]. As a result, you are unable to expand your product offering or invest in certain marketing initiatives because the funds are tied up in inventory.
We all love a sale when it comes to buying anything. A deal or sale does not necessarily mean that you will save money. If a vendor offers you a deal on items, consider the following before purchasing:
- The amount of items you need to purchase to take advantage of the deal;
- If you need to purchase a large amount of items, try to determine how quickly you can use or sell the items; and
- Whether the inventory items are seasonal – if you are not able to sell or use them quickly, consider whether you can sell or use them throughout the year.
Earth Tuitive has a range of eco-friendly items that are great stocking stuffers for anyone. Currently, they offer several different products to meet your ‘sustainable swag’ needs, including:
- A multipurpose and fashionable machine washable reusable grocery bags;
- Trendy portable utensils for all on the go dining experiences;
- Functional insulated freezer bags to keep frozen items at the perfect temperature;
- Mesh produce bags to keep fruits and veggies fresh during and after shopping storage;
- Kid-friendly silicone straws; and
- Heavy duty and practical silicone storage bags and lids set that replace the need for plastic “baggies” and saran wrap.
If you are interested in shopping with Earth Tuitive, visit their website at www.earthtuitive.com and their social media pages:
- Facebook – EarthTuitive; and
- Instagram @earth_tuitive242
Lesson #2: Stick to the budget, plan ahead, and keep an emergency fund.
This lesson was brought to you by Bria Branon and Ashley Seymour, co-owners of TropiSwim, a Swimwear and Resort-wear e-boutique based in Nassau.
In their interview, they noted the following:
Being a small business owner is a great venture, but it also has its challenges. TropiSwim was birthed 5 May 2018 and as we approach year 4, we have definitely experienced growth. Over the years, one financial lesson that we have learned is to ALWAYS stick to the budget, plan ahead, and to keep an emergency fund. In the beginning, we overstocked a lot - thinking that it was the right approach to take but we quickly learned that it was not. Through trial and error, we have mastered the skill of sticking to our budget. We stick to our budget by planning ahead and writing a financial plan and goals at the beginning of each year and each month. This definitely helps because there is always something to reference in the event you start to stray from your set budget/goal. Budgeting has also allowed us to learn our target audience and their likes and wants. If we can leave any tips for other business owners, it would be to definitely plan ahead and create an emergency fund because unforeseen expenses do pop up.
It is extremely easy to lose track of your money when managing a business; and because of this, it is very easy to overspend on unnecessary items and underspend on crucial items. On your budget, be sure to include your expected income, expenses (including your salary), and savings for the business. Cays to Coins will produce another article that further expands on TropiSwim’s advice.
TropiSwim’s products make for great gifts all year round – even during Christmas with The Bahamas’ climate! Be sure to visit their website and social media pages:
- Website: https://www.tropiswim.com/
- Instagram and Twitter: @tropiswim
Lesson #3: You don’t always need seed money to grow.
This lesson is brought to you by Owyn Ferguson, partial owner and creator of Doghouse, a party card game that helps you and your friends have fun while failing.
A great takeaway from my experience as an entrepreneur has been capitalizing on every circumstance, meaning: you don’t always need seed money to grow. Before we—the creators of Doghouse—were able to manufacture games, we created cards using Microsoft office, file paper, scissors, and a marker—not seeing the lack of money as a hindrance, but as an opportunity to test our product with a small focused group of people, getting valuable feedback before we seek and spend money. With this frame of thinking, you are treating every baby step as if it were a stride toward the end goal.
Sometimes, you have to get financially creative in order to reach your goal – especially if you are unable to secure funding right away. Try not to get discouraged and use the time as a way to prepare a solid business plan and conduct research for your business idea.
Doghouse is the perfect gift for party game lovers and makes a great addition to your stash of game night games. Game players take turns rolling the die and picking from one of six decks of cards: Throw a Bone, Dog Fight, Doghouse or Dare, Bark or Bite, Breeds, and Teachers Pet. There are no winners, but at least one loser per round—and you guessed it, if you lose, you are headed to the doghouse!
If you are interested in purchasing Doghouse as a Christmas gift, games will be on sale during the week of 20 December 2021 outside of Lowe’s Pharmacy and 700 Wines and Spirits (Harbour Bay, Soldier Road, and Caves Village locations).
Also, be sure to check out their website and social media page:
- Website: https://www.doghousegame.com/s/shop
- Instagram: @doghousethegame
Lesson #4: Pay yourself.
This lesson was brought to you by Myra Rolle, owner of Scripts by Sade, a calligraphy business that specializes in personalized cards, invitations, and Christmas ornaments.
During my conversation with Myra, she noted the following:
I always had beautiful, neat penmanship and it was always something that I was proud of. I remember as early as primary school my teachers would always ask for me to “head up” their chalkboard. As I blossomed into adulthood people would ask me to from to time to write invitations, cards etc., thus scripts by Sadé was founded. Turning my passion into a side hustle has taught me many lessons, financially and personally. Throughout my time as an entrepreneur, I learned the value of paying myself a reasonable salary – usually a set amount, especially during heavy business seasons (such as Christmas and Valentine’s Day). This allows me to enjoy the money that I make without harming my business. You still need to budget for other things related to the business, so if you spend too much of it on yourself, your business may end up with financial issues. It was not always easy remembering to pay myself a salary, but with practice, it has been worth it. It makes it easier if you plan ahead with a back-up budget plan.
When budgeting for your business, it is important to also budget your compensation – no one likes to work for free and it is important to enjoy the money you earn, even if you only pay yourself a small amount. There are various strategies for paying yourself that you can consider, including:
- A set salary amount (whether weekly, bi-weekly, or monthly);
- Paying yourself a percentage only if you make a profit (revenue or income exceeds your expenses); or
- Paying yourself a percentage of your gross income (before other expenses are paid).
Regardless of the strategy you use, be sure to account for your salary when you budget.
The personalized ornaments and cards by Scripts by Sade are awesome as stocking stuffers and affordable Secret Santa treats. If you are interested in purchasing, you can find Myra on Instagram at @scriptsbysade.
Lesson #5: Securely store financial records.
This lesson was brought to you by Trenae Miller, owner of Scripture Says Jewelry, a local Christian jewelry e-boutique that transcribes scripture on timeless jewelry pieces.
During our talk, Trenae mentioned the following:
Scripture Says Jewelry is a small business that was launched this year and as a new entrepreneur, it has been an interesting ride. One of my biggest lessons to date is to keep track of my financial records. To do this, I downloaded Zoho, an app that allows me to create and track invoices. This allows me to visualize the money that my business makes and also acts as a safety net when keeping track of client payments and orders. I also safely store any invoices and payment receipts that I receive from vendors. I would say that record keeping is important because it helps you to stay in control of your business. It helps you to make decisions on the areas you should grow/expand on and the areas that you may need to cut back on. It really helps you to plan for the future and overall helps your business to succeed.
Keeping track of your finances is an important aspect of maintaining and managing a business, for all of the reasons mentioned by Trenae. To help you keep track of your records, consider the following tips:
- Find an app that allows you to create and track invoices – some apps allow free usage for a period of time;
- If you are unable to find an app that suits your needs, consider creating and maintaining an Excel spreadsheet with customer orders;
- Deposit your income in a bank account (even if you remove it shortly after). This allows you to keep records of your cash flow;
- Keep a backup of all of your records in a secure location; and
- Match or reconcile your records with your banking statements.
Scripture Says Jewelry provides timeless jewelry with Godly messages at an affordable price. There is currently a discount on all items and if you are interested in purchasing an item, feel free to check out their social media pages:
- Instagram: @scripturesays.jewelry
- Facebook: Scripture Says Jewelry
Final Thoughts
Starting a business is not always easy, so it is good to learn from others who have experienced the ups and downs of managing their own business. If you want to start a business in 2022, remember to:
- Learn the difference between fast moving and slow moving inventory;
- Stick to the budget, plan ahead, and keep an emergency fund;
- Get financially creative;
- Pay yourself; and
- Securely store financial records.
Note: This article was not a paid advertisement. Thank you to all of the small business owners that participated.