A confused skincare aspect hustler with a full-time £50k tech job – Sage Recommendation United Kingdom

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A confused skincare aspect hustler with a full-time £50k tech job – Sage Recommendation United Kingdom

Welcome to The Cash Diaries with Sage, the place we dive into the funds of enterprise homeowners and uncover how they take care of cash issues every day.

We’re asking entrepreneurs how they’re managing their funds over a seven-day interval, to offer you an image of what incomes and outgoings actually seem like from their perspective. 

At the moment is the flip of a skincare aspect hustler who’s juggling a busy IT job on a full-time foundation.

And be sure you take a look at Reader’s Response at the end of this article, the place accountant and best-selling creator Carl Reader reveals his ideas and shares some high ideas for our entrepreneur.

Right here’s what we cowl on this article:

Meet our entrepreneur and check out their Money Diary

Final thoughts on the week

Reader’s Response

Meet our entrepreneur and take a look at their Cash Diary

  • Trade: On-line pure skincare retailer.
  • How lengthy you may have been an entrepreneur? 17 years.
  • Day job: I work for a tech startup.
  • Location: London.
  • Wage: Wage from enterprise, £0. Wage from day job, £50k.
  • Family: I stay alone in a flat in Kent.
Money Diaries day 1

Day 1 – Monday

Opening balance at the start of the week: £9,722.13

I went to bed with a lot of things on the brain, and I slept terribly last night. I hope I don’t pay for that later.

With a demanding full-time job (we’ll call it Project J) as well as the business to run (Project B), it’s sometimes tricky juggling everything during the week and trying to work in parallel.

I give all my staff Mondays off, which gives me space to plan the week and try to get ahead of things.

I decided to try and work from home as much as possible for the next few weeks to keep unnecessary spending down.

Petrol prices are through the roof, so I’m not moving my car unless I have to.

I went out to buy a coffee and decided that it would be better to buy some coffee beans and get 15 cups for the price of one.

I had a couple of early wins on Monday morning with three investors I’ve been trying to pin down agreeing to meet me later this week and one next week.

This is great because I’m hoping they can either add to the round or push me in the direction of another angel who will.

Fingers crossed.

The company I work for is also five days from launching the business. It’s been a demanding couple of weeks and now it’s all hands on deck to get everything ready for launch.

With quite an important role in that business I’ve ended up working until 9pm tonight. I’m shattered.

Hopefully a heavy sleep is in store.

No major spending today other than a bag of (what turned out to be terrible-tasting) supermarket coffee for £4.60. I’ll need to rectify that later in the week.

Raw material replenishment for one of our products came to £1,165.75.

Money earned: £2,541.68

Money spent: £1,170.35

Money Diaries day 2

Day 2 – Tuesday

Tuesday morning and I slept like a log last night. Good start – or so I thought.

Project B (Skincare side hustle)

I woke up to two emails that I didn’t really need.

We sell our products in over 100 stores across the country. We typically partner with independent stores because payment terms are more reasonable, and we get the opportunity to have a direct relationship with the owners.

One of our largest partners stores in Scotland emailed to let me know that they are going out of business.

They’ve really felt the hit of the pandemic and now with the fuel prices and sensitivity in the market they can’t sustain the business anymore.

Terrible news for them, for us, and for the market as a whole, because I feel like it’s indicative of what’s to come this year.

Project J (Day job)

This broken project is turning out to be an absolute nightmare.

It’s 4pm and I just realised I’ve only had a cup of coffee and a banana all day.

Time to hydrate and refuel.

Project B (Skincare side hustle)

Yesterday in my planning session, I realised there is a gap in my website offering and I need to get some custom development done to help bring up my AOV (Average Order Value).

I had a meeting with my developers in Vietnam and they can do the work in two days.

Working with them saves me a lot of money but it means there is less room for interpretation. I need to be extremely explicit about the development work which is demanding.

The upside is I get the work done for $200 instead of $2,000.

We produce all products in-house to maintain consistency and keep the business lean. My production team is on site today making products.

Everything is running pretty smoothly there.

The second email I got this morning was from the fulfilment centre we use to pack and ship all of our products.

They too are suffering the pinch of the climate and have had to remove the credit facility for all customers.

This means my account is now in arrears and needs to be cleared.

This is going to really mess with my cash flow this month.

I screamed a few unpleasant words at the computer. I don’t think it cared very much and now my neighbours probably think I’m nuts.

8pm. It’s been a solid 14-hour stint and my back has had enough. I decide to go for a walk to get some fresh air.

Dinner is going to be instant ramen. I can’t muster up the energy to cook or chew anything else.

The upside is I spent a total of £0 today on personal items. Lots of software costs have come out today. Google, Deputy, Web Hosting.

It never feels good finishing the day in net negative.

Money spent: £3,410.45

Money earned: £842.40

Money Diaries day 3

Day 3 – Wednesday

Wednesday morning and I can’t put my delicate and refined palate through another day of this terrible coffee.

I’m up and out to go and get some better coffee beans.

I head to one of the ‘more upmarket’ supermarkets and grab a few bags of their best beans. £6 for a bag is still a bargain so I grab two.

Oh, and some freshly squeezed orange juice because I couldn’t resist. Oh, and some seeded bagels.

And this is how things get out of hand.

I rush out before I pick up anything else I don’t need.

Project J (Day job)

In the 9am meeting, I was informed that my project fix needs to be ready for the testers by close of play today.

I think I’m going to have to turn off my Slack notifications if I’m to finish this work.

Stress is an understatement. I hand off a few pieces of work, meet with my line manager and go dark on Slack.

Headphones on.

Time to get busy.

Project B (Skincare side hustle)

A number of notifications have come through on Instagram. We’re being tagged a lot in something. I’d normally ignore it but I’m curious.

I open Instagram and it’s bad news.

One of our biggest stores in London is closing down. We’ve been tagged by customers asking where they are going to get our products.

It’s a great sign that customers care that much.

It’s a terrible sign because that’s two in a week.

Challenge J (Day job)

I’ve cracked it.

A stray piece of code has been inflicting this entire downside and I’ve discovered it. Now it’s simply time to rebuild the 45 pages with the brand new repair.

Challenge B (Skincare aspect hustle)

I acquired an bill from my copywriter. It’s massive.

She is value it but it surely’s more cash within the ‘out’ column this week.

My government assistant primarily based within the Philippines has been affected by an prolonged bout of bronchial asthma assaults over the previous two weeks.

She has requested for a few days off to relaxation.

In fact, her well being is an important factor, but it surely means I would like to choose up the slack for a few days. I’m undecided the place I’m going to seek out the time to be sincere.

Challenge J (Day job)

I’ve determined to herald a colleague in to assist me churn out these 45 pages.

I made a Loom video (display screen recording device) displaying easy methods to do the repair and we cut up the work in half. We get it completed and delivered by 3pm.

3:30pm and I’ve performed it once more.

No break. No breakfast. No lunch.

I actually can’t stay on espresso alone, so I cease to make some baked beans and vegan sausages with a few of these pretty bagels I purchased this morning.

Challenge B (Skincare aspect hustle)

The 2 main retailers going out of enterprise this week has made me realise that we’re actually weak on this space.

That’s 4 this quarter.

I would like a again up plan.

I jot down a couple of concepts about how I can get into extra shops. I’ve assembly with my head of gross sales and we devise a plan. It means I must do extra growth work on my web site although.

Fortunately, I can do that a part of the work, so it’ll price £0 in money but it surely’s a whole lot of my time.

5pm and a purchase order order from one among our shops is available in. Some excellent news lastly.

5:30pm, it’s the primary of my three investor conferences.

This investor is one I’m fairly aware of as we’ve been in touch for over 18 months. He’s by no means been within the place to take a position and nonetheless isn’t.

The deal isn’t fairly proper for him in the intervening time as he needs to deal with tech.

He’s tremendous useful although and guarantees to offer me three introductions by e mail after the decision.

I did some analysis. One of many firms appears actually good, one I gained’t qualify for, and one has invested just lately in my direct competitor.

I’ll get the deck reworked and fireplace it over to him sooner or later this week. Hopefully one thing comes from it.

A day of products and bads. I’m exhausted. 00:31 and It’s most likely time for mattress.

Complete spend: £17 in breakfast meals however it’s going to final me the remainder of the week.

Cash earned: £ 6,513.63

Cash spent: £ 685.90

Money Diaries day 4

Day 4 – Thursday

Thursday morning begins with espresso and a full breakfast.

New day, new me.

Effectively not likely, however I determine I must gasoline higher for the day forward. All objects from the pantry so £0 spent. Win.

7am. A great pal has requested me for a session on his enterprise. That is one thing I do typically.

Talking with different founders to assist them flesh out their concepts.

He needs to begin promoting his merchandise on Amazon.

We communicate in regards to the execs and cons and I give him some basic concepts about different issues he and his enterprise companions might do to retain clients.

Challenge B (Skincare aspect hustle)

Thursdays are 1:1 days with my group, so I spend the remainder of the morning earlier than I’ve to clock on with Challenge J planning these conferences.

Challenge J (Day job)

T-2 days till launch.

Our 9am assembly goes nicely, and issues are trying good. My repair was accepted by the testers and so it’s on to the subsequent difficulty.

Stress ranges are fairly low for many of us now as a result of a lot of the work is finished.

That is nice as a result of it means I can spend a little bit extra time on Challenge B right now.

Challenge B (Skincare aspect hustle)

I’ve one other investor assembly tonight that I must prep for. I don’t know this investor so it’s at all times a little bit extra nerve racking.

I’ll take care of that later.

I additionally clear the arrears for the fulfilment centre to get our account again in good standing and pay the bill for my copywriter.

Each month, we run a giveaway to get new folks concerned about our model.

Our giveaway ended final evening so we ship out packages to competitors winners.

I additionally write an e mail to the losers to try to encourage them to strive our merchandise at a reduction.

35% open charge and 4% of the record transformed (i.e. made a purchase order after opening the e-mail). I’m proud of that so I’ll begin to plan the subsequent giveaway.

One other good-sized buy order has come via right now which is nice information.

A purchase order order, or PO, is principally a doc a vendor receives from a purchaser detailing the kinds, portions, and costs of the services or products they’ve ordered.

Anyway, this implies we’ll must seize some extra uncooked supplies from my suppliers. In a single hand and out the opposite.

New venture (we’ll name this Challenge C)

Sure! A venture C. A brand new venture supply has come on my plate.

An organization primarily based in Boston Massachusetts has requested me to do some consulting work for them.

It’s a reasonably good gig that’ll hopefully solely require two to 4 hours of my time per week. The pay is de facto good, and I don’t assume I can flip it down.

I inform the CEO that I’ll give it some thought and are available again to him on Friday evening.

Challenge B (Skincare aspect hustle)

The investor assembly is a bomb. A little bit of a waste of time.

I don’t assume they have been ever within the product, and he most likely took the assembly with me as a favour to the one that launched me.

I actually want he hadn’t.

It might have saved us each a while. Doesn’t he know that I’m busy?!

Anyway, no worries. It’s all a part of the sport.

I’m not cooking tonight and I’m not not-eating for one more evening. I determine to blow the price range and order a supply.

A whopping £18 spent.

It was value it, though my physique mass index most likely doesn’t agree.

Time to get down engaged on this new a part of my web site.

As a part of the event, I must get a brand new designer within the group. I head to some freelancer websites like Upwork and freelancer.com to place a couple of advertisements up.

2:31am and I’m nonetheless sitting right here. That is exhausting.

I’m 85% performed with the brand new part however one thing isn’t working correctly. I’m not a adequate coder to essentially unpack this.

I’m going to need to convey someone in to assist.

I’m going to mattress. £18 spent on scrumptious fatty meals.

The remaining was a mix of workplace lease, house lease, car rent buy, insurance coverage, and an enormous inventory replenishment of inventory so we are able to fulfil the big order that got here in right now.

Cash earned: £7,461.47

Cash spent: £5,486.24

Money Diaries day 5

Day 5 – Friday

Challenge B (Skincare aspect hustle)

6:22am and I can’t sleep.

I do know I can repair this with recent eyes. It’s solely been 4 hours, however I determine to rise up and deal with the web site once more.

I make a breakthough. I’m 98% there.

A giant win as a result of the developer will now solely price me about an hour to get it over the road.

I seize a vat of espresso and get ready for my 9am assembly.

Challenge J (Day job)

Final day earlier than launch. 9am and the morning assembly is one other good one. Nothing actually on my plate now. It means I get to work on Challenge B.

Challenge B (Skincare aspect hustle)

I spend a lot of the day filtering via Upwork and freelancer.com.

There isn’t any candidate that I like. I’m going to need to rewrite this job submit and see if I could be extra particular.

Possibly I’ll strive Fiverr, one other related web site.

My group are on mounted flexi-hours that they’re allowed to make use of in no matter method they want. This often means they work from Tuesday to Friday however sometimes the workload is excessive they usually end on Thursday.

That is actually good for me right now as a result of it means I can work uninterrupted.

Challenge C (Consulting job)

I begin designing the answer for this new venture so I can current it to the CEO tonight.

It’s an enormous overhaul of their e mail and gross sales movement, and hopefully it’s going to automate the gross sales course of a little bit extra, which ought to usher in some income for the enterprise.

Challenge J (Day job)

We’re all the way down to the previous couple of hours of the work day and the CEO schedules a check-in assembly each two hours to make sure every part is roofed earlier than the weekend.

Challenge C (Consulting job)

The workflow answer I’ve designed appears good.

Assembly at 9pm tonight.

Challenge B (Skincare aspect hustle)

I’ve an enormous face-to-face investor assembly subsequent week and I must make an impression.

I determine to drive to our workshop to organize customized packages for every investor. It’s about half-hour from house so not too unhealthy but it surely does imply my no petrol rule goes out the window.

It’s solely the second time I’ve used any petrol this week so I shouldn’t grumble.

The workshop is subsequent to my favorite fish and chips store. I can’t resist.

Medium cod and chips please. Additional onion vinegar. Oh, and might of Coke. I’d as nicely go full fats if I’m going to do it in any respect. £11.10 and once more completely value it.

Challenge C (Consulting job)

The American CEO loves my thought. I’m going to tackle this venture and flesh out the venture over the subsequent two weeks.

That is nice information though I’m not fairly certain the place I’m going to seek out the time.

Cash out right now was 100% on one among my freelancers.

Cash earned: £271.34

Cash spent: £569.10

Money Diaries day 6

Day 6 – Saturday

Challenge B (Skincare aspect hustle)

Saturdays are at all times mild workdays.

I spent the morning ending off the web site difficulty I had. It’s at 99% now and I can push it stay on Monday. I’ll repair the 1% within the subsequent week or so.

I’m shifting house subsequent weekend, so I’ll spend the remainder of the day packing up the flat.

My girlfriend comes over and we go to dinner and seize a couple of fancy cocktails in an area bar.

Dinner: £41

Cocktails: £45

She will get dinner and I get the drinks.

On-line gross sales account for all revenue right now. Saturdays are sometimes gradual and right now isn’t any totally different.

Cash spent: £45

Cash earned: £473.89

Money Diaries day 7

Day 7 – Sunday

A full relaxation day right now.

I spend the morning packing up the flat and the afternoon strolling by the seashore and stress-free. I’ve received a busy week subsequent week.

A ceremonial chips and mushy peas have been wanted.

That’s three fatty meals this week. I believe I’m going to need to have an intervention. £2.20 chips + £1.60 mushy peas. Complete spend right now: £3.80

Cash earned: £42.60

Cash spent: £3.80

Closing stability on the finish of the week: £16,498.30

Remaining ideas on the week

My ultimate ideas are that I spend a whole lot of time juggling the 2 gigs.

Wanting on the cash this intently daily made me assume extra about our buyer acquisition prices and following the information extra.

I realised that I must get a knowledge analyst on the group as quickly as potential to assist us flesh out the information so we are able to comply with the cash in a greater method.

I additionally realised that we’re fairly reliant on about 10% of the shops which have good quantity.

The others aren’t definitely worth the vitality as their worth to the enterprise isn’t excessive sufficient. Taking a look at this in additional element kicked me into gear to make a large change in our gross sales technique.

Additionally, petrol is de facto, actually costly. Not driving my automotive this week saved me no less than a full tank of petrol, which in the intervening time is about £125.

It’s most likely time to go electrical.

I used to be actually disciplined with cash this week and the one surprising factor that cropped up was having to clear our fulfilment centre (basically a packing warehouse) charges.

That was a giant hit and we’d have ended up with a a lot better stability if that didn’t occur.

If I might give recommendation to any founder or entrepreneur, it will be to comply with the information.

By trying extra intently on the knowledge this week I’ve had a variety of new insights. Each financially and in a extra basic enterprise sense.

Reader’s Response

And to wrap up… what are Carl Reader’s ideas on the monetary habits of our skincare aspect hustler?

Take a look at the video beneath to seek out out…

Like it? Share with your friends!

1.4k shares, 108 points


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