I confess, I’m a working slob like most of you. My hope is that by teaching others how to improve their craft businesses that I can do this full time some day. So have you ever thought what you’d have to do to walk away from your job? Here’s a simple formula for determining how many sales you’d need to average to equal your current salary and benefits.
First add salary, insurance, benefits, savings, etc. Now figure what the average profit from each item is. Divide income by profit per item and that’s how many items you’d need to sell in a year. Now divide that number by 365 and that’s how many items you’d need to sell each day.
Example: Income and benefits = $40,000 / $10 profit per sale= 4000 / by 365 = about 11 sales per day.
When you chunck it down to a daily level it makes the goal much clearer. Only you can determine if you want to make the leap to self-employment but hopefully this formula will help provide a goal to shoot for.
{ 2 comments… read them below or add one }
Norm, you’re a genius. I can’t wait to read more. I’ve only just begun the process of planning a craft business and I can already tell that your crafty coaching is going to be a world of help to me. Thank you so much!
I would love to know if you have any more suggestions, i am at the point where I really want to quit but need to get ready first…..
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