Lack of financial tracking hinders growth.
One of the main themes that emerges from the podcast transcript is the lack of financial tracking and its negative impact on business growth. Bakari, the fashion designer featured in the podcast, admits that she does not know how much her store made in a given year. This lack of awareness of her store's financial performance is indicative of a larger problem within her business.
Without proper financial tracking, Bakari is unable to gauge the success or failure of her store. This lack of knowledge hinders her ability to make informed decisions about her business and prevents her from effectively scaling her operations. As she mentions, she took on custom orders, which proved to be a time-consuming endeavor that prevented her from focusing on her store. This realization prompts her to stop taking custom orders in order to prioritize the growth of her business.
Furthermore, Bakari's reliance on multiple payment methods, such as Cash App, Zill, and cash, adds to the complexity of her financial tracking. She mentions that she has a POS system but still accepts other forms of payment, leading to a fragmented system of tracking and accounting for sales. This lack of consistency in financial tracking not only makes it difficult for Bakari to determine her store's revenue but also increases the risk of theft or loss.
The podcast also touches on the issue of theft within Bakari's store. While she denies any wrongdoing by her employees, there is a suggestion that some may be stealing from her. Without proper financial tracking and inventory management, it becomes challenging for Bakari to detect and address these issues. This lack of control over her business's financial operations not only puts her at risk of financial loss but also erodes trust within her team.
The consequences of the lack of financial tracking and inventory management are evident in Bakari's uncertainty about her store's performance. She mentions that she implemented a system halfway through the season to track sales, but this system does not account for all forms of payment, such as Cash App and Zill. As a result, Bakari's understanding of her store's revenue is incomplete, hindering her ability to make informed decisions about her business's growth.
In conclusion, the podcast transcript sheds light on the struggles faced by fashion designers, specifically regarding the seasonality of their business. Bakari's experience highlights the need for effective financial management and planning to navigate the highs and lows of the fashion industry. By recognizing the challenges and seeking help, fashion designers can find ways to overcome the obstacles and thrive in this competitive industry. Implementing a robust financial tracking system, streamlining payment methods, and establishing inventory management protocols are crucial steps towards achieving sustainable growth and success in the fashion industry.