How to Plan Financially


It is vital that financial planning is part of your market day plan. With a small business, you will be able to directly plan and track all of your expenses. This is not an easy task if it doesn’t come naturally to you, but it can be easily done. There are many online tools that can help you to stay on track. You might need to save up to be able to invest and spend in the following areas:

Time

You might want to track the amount of time you spend on different tasks. You can use a simple timer app to track your time per task and analyse your reports week by week. You’ll be spending time on the following: Shopping Travelling Planning Research * Creating

example image

Marketing costs

example image

Admin costs

example image

Creation costs

example image

Stall costs

example image

Costs on the day

First-aid kit

example image

How much do I need to sell?

To find out how many transaction you need to make to cover the cost of your market day, take the total expenses and divide it by the average profit per transaction. So if your total cost for the event was R1000 and you make an average of R10 on each product you sell, you will need to sell about 100 items on the day.

How much do I want as income?

Take your income goal and divide it by the average profit per transaction to give you the number of sales you need to make. So, if you want to have an income of R150), you need to make 150 sales. Remember that not all of your income will be profit, you will still need to cover your expenses.

example image

Budget for bad market days

Every time you set up your stall, you’ll be hoping for a great market day with lots of customer interaction and amazing sales. You’ll be hoping to cover your costs at the very least. The truth is that not every event is successful, and sometimes customers are just difficult or critical. It’s important to stay respectful, kind and always be ready to go the extra mile. Remember to thank customers of all kinds and accept their feedback. Do not take nasty comments personally and treat them as market research. Jot down notes and ask customers questions about why they might feel a certain way and revise it a few days later with a glass of good wine.

On the day, find a way of tracking your sales. It might also be a good idea to find out what time of day you sell the most. If you try different markets, your sales notes will help you to find out which one gives you the most sales.

It can be really tricky to know how to price your items, especially if you’re a bargain hunter yourself. If you set the bar too low your products might not be seen as truly valuable or even desirable, but if you price them too high, your average fair visitors won’t be able to afford them. In our next blog post we will be discussing how to price your items right.

Read about how to choose the right market for your products and how to brand your business successfully.