This week focuses on understanding the financial side of running my small business, TrendShells. Money management is as important as selling the product, because even if I sell many phone cases, the business wonāt succeed without proper financial tracking and planning.
1. Explaining Financial Performance
Financial performance shows how well a business is doing in terms of money earned and spent. For TrendShells, it includes:
Revenue (Sales): Money earned from selling phone cases. For example, selling 20 cases at $15 each would give $300 revenue.
Expenses: Money spent on buying plain cases, packaging, stickers, and marketing.
Profit: Revenue minus expenses. This shows whether the business is earning money or losing it.
Why it matters: Tracking financial performance helps me understand if TrendShells is growing, which products sell best, and where I might need to reduce costs.
2. Understanding How to Track Finances
Tracking finances means keeping a record of all money coming in and going out.
How I do it for TrendShells:
Record every sale (cash or online payment).
Keep a list of every expense: cost of cases, packaging, ads.
Use a simple Excel or Google Sheet for monthly tracking.
Check monthly to see net profit and plan for improvements.
Helps avoid overspending.
Shows how profitable the business is.
Makes future planning and budgeting easier.
3. Sourcing and Securing Funding
Funding is the money needed to start or grow a business. For TrendShells:
Sources of funding I can use:
Personal savings (the easiest for a small student business)
Family or friends who are willing to support
Small student loans or microloans (if needed)
Prepare a simple plan showing how the money will be used (buying cases, marketing, packaging).
Show potential profit so lenders or supporters know their investment is safe.
Keep records of spending to build trust.
4. Preparing a Simple Cash Flow Projection
A cash flow projection predicts money coming in and going out over a period (month by month). This helps plan for expenses and ensures the business does not run out of money.
Example ā TrendShells 3-Month Cash Flow Projection
Marketing & Other Expenses: $30
Marketing & Other Expenses: $40
Marketing & Other Expenses: $50
Sales Revenue: Money earned from phone case sales
Cost of Goods Sold (COGS): Buying blank phone cases, stickers, and packaging
Marketing & Other Expenses: Instagram ads, small delivery costs, extra materials
Net Cash Flow: Profit after all expenses
TrendShells is gradually increasing sales and profit each month.
Helps plan for future growth and avoid running out of money.
Understanding finances is crucial for running TrendShells successfully. By tracking financial performance, managing cash flow, planning funding, and monitoring expenses, I can ensure the business stays profitable and sustainable. This week taught me the importance of planning and record-keeping, which are key skills for any entrepreneur.
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