Before I start, I wanna be super clear here.
The purpose of this blog isn’t to hit back or get defensive on the questions asked, I actually welcome the questions.
I know these are the same questions I would have asked back when I was either starting out or struggling to see success, and I know that underneath the doubt or comparison panic, I would have been just searching for answers.
I wanna be the one who helps the creative I used to be by not gatekeeping or hiding behind any kind of numbers that aren’t truthful.
Which is why I decided to collect some of those questions and answer them here…
If there’s one lesson I learnt early on, it’s that it is expensive to run a business. If you’re only charging clients what it costs to run your business and not adding on your profit, you’re going to find it incredibly hard to grow in any capacity.
Most businesses run on a 30-35% profit margin, meaning 65% of their revenue is expenses. Those can look like running costs, purchasing stock if they are a product based business or those big ticket items like a commercial space or warehouse if they’re super big.
BUT the thing about freelance is the profit margins are way better for us service based businesses, and in particular, freelancers and solo business owners.
For me, 2023 had a few big ticket items.
I invested in coaching with an incredible coach , and 8 months of coaching ain’t cheap!
I upgraded my hardware, purchased new software systems, invested in new lighting for filming my classes, as well as having a photoshoot and a filming shoot in there too.
I also have a copywriter and a video editor I use for projects that are for the Creative Business Kitchen rather than Jasmine Designs.
But it was also the first year I didn’t have $8k in studio expenses (I gave up my studio rental space in late 2022), so that was a nice boost.
And lastly, I had a particular client in 2022 and 2023 that I did corporate gifting for, meaning I was purchasing stock, putting a markup on that product and sending it out on behalf of them. Although there was a profit there, those expenses ate into my profit margin, but boosted revenue. I cut back on those jobs in 2023 and my profit margin thankfully reflects that!