Breakeven

Am feeling a bit despondent at the moment as orders have tailed off dramatically after Valentines Day and and the Independent-fuelled flurry earlier in the month.

The problem is that mirror mirror is currently in the wonderful world of ‘breakeven’ ie. we only just about make enough each month to cover our costs, which is all faintly depressing (particularly when Christmas, when we do much more than breakeven, is so far away). Sometimes this business feels like pushing a huge boulder downhill.  It seemed to gain momentum over Christmas but it’s got bogged down a bit now and I need to push at it a bit more again.

I know in my heart of hearts that online retail is a volume business, that I just need to keep going and hopefully the volume of orders will continue to build gradually so that we flip easily into profit each month.  However we’re not quite there yet and every time we get a dip in orders I worry that it’s all going pear-shaped and I will be left with thousands of pounds worth of unsold stock. (The Husband says I overdramatise things somewhat).

I didn’t make the above graph, but am finding it strangely reassuring as it’s telling me that this is the classic pattern for a small business.  I read somewhere that the start-up period was basically a competition to get the business to a stage where it can cover its basic costs before you run out of money to invest. Once you’ve got to that stage you know you’ve won and can then focus on growing the business.  Scarily though most small businesses never get there.