Hey guys!
I run a successful clothing line. We are projected to hit our 2019 goal of $2.2M in revenue by end of year. Growth is double from 2018.
I have 2 questions.
#1 How do we increase profits? When we hit $2.2M our expenses will be right up there close to that $2.2M. How do we further separate income from expenses?
Our main expense is inventory. For example, say we order 2000 tshirts. Each shirt is $10 per. That's a $20,000 order. That inventory will sit on the shelf for a few weeks until we sell them. We typically sell them for $25 per. So our profit is eventually there but not realized until they are all sold. In the meantime, we're ordering more shirts, or more hoodies, or more apparel. It seems we can't ever further distance our profit from expenses. It's a continuous cycle.
#2 All of our profit and revenue is immediately put right back into the business for more re-orders, staff salaries, operating expenses etc. At what point in a growing business does the CEO (myself) get paid? How does that payment structure look?
Any advice is greatly appreciated, I look forward to your insight!
-Tyler
I run a successful clothing line. We are projected to hit our 2019 goal of $2.2M in revenue by end of year. Growth is double from 2018.
I have 2 questions.
#1 How do we increase profits? When we hit $2.2M our expenses will be right up there close to that $2.2M. How do we further separate income from expenses?
Our main expense is inventory. For example, say we order 2000 tshirts. Each shirt is $10 per. That's a $20,000 order. That inventory will sit on the shelf for a few weeks until we sell them. We typically sell them for $25 per. So our profit is eventually there but not realized until they are all sold. In the meantime, we're ordering more shirts, or more hoodies, or more apparel. It seems we can't ever further distance our profit from expenses. It's a continuous cycle.
#2 All of our profit and revenue is immediately put right back into the business for more re-orders, staff salaries, operating expenses etc. At what point in a growing business does the CEO (myself) get paid? How does that payment structure look?
Any advice is greatly appreciated, I look forward to your insight!
-Tyler
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