Donna Bordeaux and Donna Genie advise studio owners on adding new art mediums like glass fusing or mosaics. Any new medium should contribute about 20% of gross profit within six months, and you need a concrete plan to make it profitable before buying equipment or inventory.
20% of your gross profit line.
Within six months.
Studio owners. Are you thinking about adding a new medium?
Maybe you don't do clay, or maybe.
You want to add glass fusing or.
Mosaics to your mix of products. All right. I want to make sure that you have good guidelines because we can look.
At a lot of shiny objects and.
They look fine, fun and cool. But what we really want to analyze.
Before you add those mediums is what's their return on investment going to be and how quickly will they help me get there.
If you're going to just have to.
Buy equipment and materials to keep in your inventory that are not going to turn, or you don't have a significant plan in place to make those things work immediately upon purchase, don't do it. All right. I suggest that you look at the.
Mediums that you offer right now. Determine how much each of those mediums makes for you. If they don't contribute 20% to your gross profit line, you should probably get rid of them. You want to narrow your focus, especially these days. You can spend a lot of money on inventory and supplies and the space to house those and do those projects. Although they might be fun, they may.
Not be good business opportunities, so make sure you're analyzing that again. If you want to add new mediums, have a plan in place of how they're going to get to that 20% within six months.
That should be a contributing factor to.
Your decision of whether or not to add that new medium to your mix. I'm Donna Bordeaux with pyopaccounting.com Please follow us on our YouTube page and our Facebook page. We'll keep you up to date with our latest news there.
Thank you.
Have a great day. Sam.
