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Hill Inner circle 1164 Posts |
Lets face it. We love it. Kids shows that is. But most of the time it is jolly hard work. As a part time performer I know the importance of effective financial management in a competitive kids show market. Let me know what you thin of my thoughts.
I am a strong believer in the maintenance and periodical consultation of data as a tool for effective business planning and forecasting. I believe that using our past sales data to plan our future goals and targets is the only way 0ne can accurately anticipate the future. Here are some examples I find useful; 1. Call VS Action Percentage - here I measure the percentage of enquiry calls that actually turn into paying business. Where I see my percentages slipping, I start a sales drive, local paper marketing ploy, or do a free show for the local school (all of these give me short and long term pumps to business) 2. Sales Mix - her I critically compare which 'products' (i.e. budget birthday show, premium birthday show, optional add on’s like cake, goody bags, magic sets, balloon modelling, face painting) are selling better than others. I found from this for example that I was selling much less goodie bags than I thought I was, and a lot of my capital was being unnecessarily tied up in stock. I then reduced the price slightly making this particular product more commercially attractive to the consumer, more profitable, and meant that they had a quick turn over (leaving much less stock on my shelf). 3. ROI- A standard business ratio used by every company from Disney to Price Waterhouse Cooper, Return On Investment is generally calculated at the end of your business period i.e. every 1 month/6month/12 month. It very simply adds up everything you have spent on the year comparing it against everything you received during the year. IF YOUR ACCOUNTANT isn't ALREADY DOING THIS FOR YOU - HE SHOULD BE!!! This is the most critical tool available to the self employed. We often fool ourselves into believing we are more profitable than we actually are. This ROI figure alone (often expressed as a ratio or percentage) will give you the cold hard facts. Does anyone else use these types of statistics? What do you find useful? Can you think of any others that might help the hard working performer? Look forward to hearing all your thoughts! |
Cheshire Cat Special user Wilmslow, UK 941 Posts |
Hello David. As a part-time performer you certainly take the business very seriously, and well done I'd say. We have been full-time entertainers since September 1980 and apart from spells of myself going back playing piano/organ alongside this, nothing else. Have also played the UK property (real estate) market to good advantage but I don't consider this a business.
I have a friend who has always analysed the business carefully and kept an incredible amount of detail and reference on AppleMac. We just simply these days look at our monthly turnovers, annual turnovers and in fact adjust the amount of work we do according to UK tax brackets and liabilities. We notice customer trends, i.e. recent trend, - fall-off of Independant School children's parties/increase in State School children's parties; less parties in areas adjoining Manchester City suberbs/more parties out in the country/villages etc. Other than this as long as the annual turnover meets our cash flow needs then that's it. Yes, it is hard work isn't it? But the older you get the more you seem to be able to cope. I just find the driving/loading/unloading extremely tiring, - more so than the children! |
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