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| Write Your Own Paycheck |
by EESD Dorothy Boyd From the 3rd month I was in the company, & every month since, I have HAD to generate income. My first year, 1982, it was at least $600 per month in "take home pay" ...never less. If I had failed to generate that cash, I would have been back teaching school immediately. Because leaving my baby in childcare & not paying my bills on time were two unacceptable options, I was very diligent to do 2 things to guarantee that that money would always be there: 1) I kept 15-20 selling appointments up on my datebook at all times. Half postponed of course, so I ended up holding 10 classes & about 5 facials per month. (Today that activity would put you into a car or directorship & give you an exponentially bigger monthly income than $600!) I learned quickly that I had little control over what appointments held on time, but I had total control over how many I booked (& with whom...quality people are more reliable) . What I wrote in my datebook would soon be in my checkbook! 2) I CAREFULLY guarded my inventory investment by NEVER EVER EVER EVER spending even a cent of the 60% portion of my retail sales on anything but wholesale orders to replace what I had sold, no matter what unexpected bill came due. The integrity & equity of that full inventory I worked so hard my first 3 months in MK to build absolutely had to be maintained. It was the Goose that Laid the Golden Egg , & without it, I had no future income! I simply do not understand the mentality of some consultants that gives them permission to spend the 60% on anything else. Remember what happened when the farmer got greedy & cut the goose open to get all the golden eggs out at once??? Dead geese lay no eggs, & a bankrupted inventory pays no income! Attached is a Microsoft Word File to save, study, & apply. Where else but in Mary Kay can we literally plan our own income & write our own paychecks? Today my average monthly income is over $10,000. 5 years from now, even that amount will be dwarfed. Can you really afford NOT to be diligent in keeping your datebook filled & your inventory protected? MONEY MANAGEMENT Example: *Average class: 150. retail (company average is higher) x 2 classes/week = 300./week (1 class = approximately 2 hrs work) *300./week x 4 weeks = 1200. (or 8 classes/month = 16 hrs work per month) *Income will vary depending on the amount of business you choose to do & your personal class average. You will probably want to deposit your income weekly, however, I have put this in a monthly form to simplify the concept. 1200. retail sales per month is split out as follows: 720. 60% (restock product) 120. 10% (expenses) 360. 30% (profit) 720. (60%) - to restock product each month (600. wholesale) (additional 120. over the 600. is for sales tax on the retail product, tax on your bonus, shipping and approximately 5% of the wholesale for business supplies) Sapphire Star Consultant each quarter (1800.) company prize & star for your ladder 120. (10%) - to hold in savings for the expense of Career Conference, Seminar, Fall Retreat, Preferred Customer Mailing, etc. (1440. /yr) 360. (30%) - profit for loan payment and pay check - Approximately 100. loan payment & 260. profit per month for 16 hrs of work or 16.25/hour after expenses! Additional or less income is figured exactly the same way. Remember: Your recruiting commission from the company is additional income and can be figured differently! The above examples are for your Sales income. Consistently working is your key to success! work = play with a purpose J Revised: 08/13/02, Jody Grafft MONEY MANAGEMENT
Example: *Average class: 150. retail (company average is higher)x 2 classes/week = 300./week(1 class = approximately 2 hrs work)
*300./week x 4 weeks = 1200. (or 8 classes/month = 16 hrs work per month) *Income will vary depending on the amount of business you choose to do & your personal class average.
You will probably want to deposit your income weekly, however, I have put this in a monthly form to simplify the concept.
1200. retail sales per month is split out as follows:
720. 60% (restock product) 120. 10% (expenses) 360. 30% (profit)
720. (60%) - to restock product each month (600. wholesale) (additional 120. over the 600. is for sales tax on the retail product, tax on your bonus, shipping and approximately 5% of the wholesale for business supplies) Sapphire Star Consultant each quarter (1800.) company prize & star for your ladder
120. (10%) - to hold in savings for the expense of Career Conference, Seminar, Fall Retreat, Preferred Customer Mailing, etc. (1440. /yr)
360. (30%) - profit for loan payment and pay check - Approximately 100. loan payment & 260. profit per month for 16 hrs of work or 16.25/hour after expenses!
Additional or less income is figured exactly the same way.
Remember: Your recruiting commission from the company is additional income and can be figured differently! The above examples are for your Sales income.
Consistently working is your key to success!
work = play with a purpose J Revised: 08/13/02, Jody Grafft
OPENING YOUR MARY KAY BUSINESS USING SOMEONE ELSES MONEY
Inventory amount is an example only. The amount you choose for your business investment is up to you.
CREDIT CARD #1 CREDIT CARD #2
BEGIN WITH A ZERO BALANCE REVOLVING ACCOUNT CARD TO FINANCE YOUR BUSINESS USE TO REORDER INVENTORY (restock your shelves) EXAMPLE: BEGIN MK BUSINESS WITH 1800. WHOLESALE 1800.00 +++ 600.00 / MONTH 175.00 BOULEVARD SOFTWARE 720.00 NEEDED (approx.) 31.95 BUSINESS CARDS-MK IMPRESSIONS _________ 2500. 00 Approximately PAID IN FULL EACH MONTH NEVER ACCRUES INTEREST! +++ = sales tax on initial inventory, business supplies to get started, sales tax on bonus products, etc. (I suggest approx 100.-150. section 2 to start) A REGULAR CREDIT CARD IS A ONCE INITIAL BUSINESS SET UP HAS BEEN GREAT IDEA FOR YOUR REVOLVINGPURCHASED, DO NOT USE THIS CARD AGAIN ACCOUNT RATHER THAN A DEBITUNTIL IT HAS BEEN PAID IN FULL. CARD, TO AVOID POSSIBLE PAY 100.00 PER MONTH LOAN PAYMENT. ACCOUNT RESTRICTIONS BY THE ALL INTEREST IS TAX DEDUCTIBLE IF BANK. A ZERO BALANCE CARD HAS BEEN USED.
I STRONGLY RECOMMEND NOT COMBINING THIS INVESTMENT WITH PERSONAL FINANCES. WHEN MARY KAY INCOME IS MANAGED SEPARATELY, YOUR BUSINESS WILL BE SELF-SUSTAINING AND SHOULD NEVER ADVERSELY AFFECT YOUR HOUSEHOLD BUDGET OR PERSONAL SAVINGS.
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If you choose a bank loan to finance your business rather than a credit card, the proceeds from the loan must be deposited into a separate checking account (instead of your personal/household checking account) as proof of business use. Doing this will eliminate the possible loss of your business tax deductions allowed by the IRS.
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I use an interest bearing Savings Account to hold my 60% reorder cash until I am ready to order once a month and the funds are needed to make the payment for credit card #2. 10% goes into my expense checking account. 30% profit is deposited into my personal checking. (I also pay the loan payment on credit card #1 from my personal checking account.)
Commissions paid by the Company for Team Building can be used as personal profit until you are a car driver. Sue Kirkpatrick suggested to me at that time to divide each commission check into 1/3s1/3 profit, 1/3 expenses and 1/3 tucked away for yearly Income Tax. I have done that faithfully since I earned my 1st car and it works GREAT!!! Directors: 1st check of the month is mine, 2nd check is 1/3s.
This system has allowed me to operate my business professionally and responsibly. The funds set aside for Inventory and Expenses are considered operating capital to keep my business running smoothlyits not mine to spend!! I never have trouble finding the money I need to attend Seminar, Retreats, Leadership or any other event by following this money management system.
Wherever you are in your business, growth is inevitable when your consistent focus is on INCOME PRODUCING ACTIVITY and you acquire a positive attitude toward money management by making wise business decisions. Revised: 08/13/02, Jody Grafft
500. WEEKS:
Example: *Average class: 150. Retail (company average is higher)x 3 classes.+ reorders /week = 500./week (1 class = approx 2 hrs work)
*500. /week x 4 weeks = 2000. (or 12 classes/month = 24 hrs work per month)
*Income will vary depending on the amount of business you choose to do & your personal class average.
You will probably want to deposit your income weekly, however, I have put this in a monthly form to simplify the concept.
2000. retail sales per month is split out as follows: 1200. 60% (restock product) 200. 10% (expenses) 600. 30% (profit)
1200. (60%) - to restock product each month (approximately 1000. wholesale) your wholesale may vary a little, but should not fall very much under 1000. (Additional 200. over the 1000. is for sales tax on the retail product, tax on your bonus, shipping and approximately 5% of the wholesale for business supplies) Diamond Star Consultant each quarter (3000.) company prize & star for your ladder
200. (10%) - to hold in savings for the expense of Career Conference, Seminar, Fall Retreat, Preferred Customer Mailing, etc. (2400. /yr) Tax Deductible!
600. (30%) profit for loan payment and pay check - Approximately 100. loan payment & 500. Profit per month for 24 hrs of work or 20.83/hour after expenses
Additional or less income is figured exactly the same way. Remember: Your recruiting commission from the company is additional income and can be figured differently! The above example is for your Sales income. Consistently working is your key to success!
work = play with a purpose J Revised: 08/13/02, Jody Grafft
1000. WEEKS: Career Women with Vision!
Example: *Average class: 150. (company average is higher)x 5 classes.+ reorders /week = 1000./week (1 class = approximately 2 hrs work)
*1000./week x 4 weeks = 4000. (or 20 classes/month = 40 hrs work per month) *Income will vary depending on the amount of business you choose to do & your personal class average.
You will probably want to deposit your income weekly, however, I have put this in a monthly form to simplify the concept.
4000. retail sales per month is split out as follows: 2400. 60% (restock product) 400. 10% (expenses) 1200. 30% (profit)
2400. (60%) - to restock product each month (approximately 2000. wholesale) your wholesale may vary a little, but should not fall very much under 2000. (additional 400. over the 2000. is for sales tax on the retail product , tax on your bonus, shipping and approximately 5% of the wholesale for business supplies) Emerald Star Consultant each quarter (3600.+) company prize & star for your ladderplus National Queens Court of Sales and a Diamond Ring from the company at Seminar!
400. (10%) - to hold in savings for the expense of Career Conference, Seminar, Fall Retreat, (and Leadershipyoull be a Director) Preferred Customer Mailing, office help and housekeeper, etc. (4800. /yr) Tax Deductible!
1200. (30%) profit for loan payment and pay check - Approximately 100. loan payment & 1100. per month for 40 hrs of work or 27.50/hour after expenses
Additional or less income is figured exactly the same way. Remember: Your recruiting commission from the company is additional income and can be figured differently! The above example is for your Sales income. Consistently working is your key to success! . Food for thought: If you are paid an hourly wage, your average job is 40 hours per week or 173 hours per month or 2080 hours per year. Add on lunch hours, travel time and any overtime to figure how valuable your time is when you work for someone else.
work = play with a purpose J revised: 08/13/02, Jody Grafft |
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