How to budget for supply-chain issues in your business

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Founder Finances: Etsy seller shares the $3,700 monthly budget preparing her business for its busiest quarter

Welcome to"Founder Finances," a new Insider series discussing founders' monthly budgets.She says spending in June and July to prepare for her Q4 surge is vital to her business.on the hunt for new supplies, like fun-shaped crayons, when she realized the lack of variety in the marketplace.in 2007. Her business, Art 2 the Extreme, quickly turned from hobby to side-hustle to full-time career over the past 15 years.

"Many of these costs during the slower months add up and keep summer profits down," she said in an email. Lewis added that her priority remains investing in the holiday-season exposure and growth year-round.Here's the budget breakdownLewis spent $370 on independent contractors in June. She hires these workers to complete tasks — like peeling crayons and bagging the products — that she feels take too much time away from her other responsibilities as a solopreneur, such as marketing.

While Lewis is about to enter some of her slower months for business, she spent $210 on packaging in June.," she said of product materials, packaging, or other necessary items. Especially with persisting supply-chain issues,"boxes might not be in stock in the winter, you need to be ordering it in bulk now."

"If I can't find those boxes come September, October, or November, that's going to pose a huge problem and disrupt my entire season," she said."Even if I have to charge it now and just pay it off later, you have to plan ahead."Etsy required Lewis to spend $634 on marketing — which goes to services like its gift guides, newsletters, and other pushes — in June. Aside from Etsy marketing, Lewis aims to create other strategic partnerships to keep her costs down.

 

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