One of the biggest black boxes in entrepreneurship is money. How do you make it? What are realistic milestones? What should you be charging? Are there different profit margins depending on the industry? How do you predict the future with financial projections which can feel ridiculous (and a lot of times are).
In my 1:1 consulting a financial audit is high priority - in fact, it’s the second session. If I’ve learned anything from my business so far is that you never know what people are making from the outside. Some people look like they’re rolling in the dough and then when I’ve taken a peak behind the curtain, they’re in the red. Some people look like they have fairly modest businesses and again, when you lift the hood - they’re making 7 figures. It never ceases to amaze me.
When I talked to Whitney of Sonnet James last month and she shared her revenue (!) and that the industry standard in fashion is a 10% profit margin (10%!) it got me thinking that we all need this. We need this so bad.
Everlane has been a leader in transparency pricing for their products but this pricing doesn’t include internal operations, marketing, office costs etc. Speaking of transparency, Glassdoor has an interesting review of the company, "Company business growing, but lack of transparency, and growth in leadership and maturity." Wouldn’t it be great to see how much revenue they’re making? If they’re in the red? How much people are getting paid?
And then there was Buffer. Who is really just taking this whole thing to another level, it publishes their equity, revenue, salaries and more! It’s insane and fascinating. (I’m shocked the founder is only making $225k).
Someone asked me to share my revenue the last 3 years on instagram and I did (the horror!). I asked if others would too and had 34 people message me saying they would like to participate. I was thrilled and pleasantly surprised. I feel like there’s so much to learn from all of these different businesses that I need to create a platform to allow all of these people to share.
And because Instagram can be magical sometimes I was introduced to Elloise Mae Foster of Budget Bae, a talented muralist that has a passion for female financial literacy. She’s also Melbourne based and we’ve teamed up. She’s going to be producing the fab graphics and I’ll be handling the copy and we’re channelling our raging feminism in this series, just for you.
Want to join the money transparency revolution? Fill out this form and/or contact me - firstname.lastname@example.org
Currently seeking tech and product based businesses. If you’re service, would still love to hear from you! And if you’re a 9-5 but have a side hustle? Would love to hear from you too!
Here are some money references that people have been sending to me with all the money talk. Maybe they’ll help you!
The Owler - A “glassdoor” for the start-up world. I found this incredibly helpful. You can see their revenue, investment money, competitors, even a CEO score! I’m spreading the word on it like crazy because I think it’s an amazing tool to see the potential of a business idea and what’s currently happening in the market.
Suze Orman at the Apollo on Oprah’s Super Soul Conversation - Gives me life. Suze is incredibly charismatic, has the american dream coming of age story. Financial advice? Long story short - pay off your debts, max out your retirement savings, live beneath your means.
Money Diaries by Refinery 29 - I spent a good 2 hours on this site after it was sent to me. Loved looking at the $315k/year New York entry. There’s a ton of 5 figure and entry level salaries which are great for your mid to late 20’s but it would be nice to see more 6 figures! Also, these are mostly corporate 9-5’s so that’s where I come in on wanting to see a more entrepreneurial spin.
The Financial Diet - has an amazing following on instagram to just be talking about money to women had their highest youtube video has 1.6 M views - 11 Things I Cut from My Budget and Don't Miss at All. Great for women in their early to mid 20’s.
The Broke Generation - Melbourne based - she and I are trying to figure out a time to collaborate!