There's a question many makers can't answer precisely: 'how much do you actually earn from a workshop?'. They know how much they take in — the ticket price for participants — but how much is left in their pocket after materials, costs and time is often a mystery, a gut feeling. And gut feeling can deceive: workshops that seem to be doing brilliantly sometimes earn little, while other 'minor' ones are the most profitable. Keeping simple records doesn't mean turning into an accountant: it means having the truth right in front of you, and it's what turns an improvised activity into a sustainable craft.
The good news is you don't need a complicated system. A few entries, recorded consistently, are enough to get the picture. Let's look at what to track and how.
What to record for each workshop
- Revenue: how much you actually received (spots sold × price, net of any discounts).
- Material cost: how much the materials used up in that session cost you.
- Other direct costs: any fees, venue costs if it isn't yours, consumables.
- Time spent: prep + running + tidying up. It isn't a cost 'in euros', but it's the most precious resource you spend.
From these few entries you get the figure that counts: the margin, i.e. how much is left after costs. And by relating it to your time, you understand what an hour of your work is really worth in that workshop.
A light method you can actually keep up
The best system is the one you can actually keep up, not the perfect one you abandon after two weeks. A simple sheet — on paper or digital — with one row per session and the few columns above is more than enough. The golden rule is consistency: record right after each workshop, while the data is fresh, instead of putting it off and losing the thread. Five minutes per session gives you, within a few months, a precious snapshot of your business.
What the numbers reveal
Keeping the books almost always leads to a useful discovery: that a certain workshop has margins too thin and needs adjusting on price or costs; that another, less flashy one, is your goose that lays the golden eggs; that certain materials weigh more than expected; that an experience you 'love' costs you far more time than it earns. These aren't judgements, they're clues for deciding better: where to raise prices, what to push, where to cut waste.
From the books to a strategy
The ultimate goal isn't recording for the sake of recording, but using the numbers to build a stronger business. Every few months, look at the whole picture: which workshops hold up and which don't, how the margins are trending, where the business is growing. From a maker who 'goes on gut feeling' you become one who decides with real insight — and over time, that's what makes the difference between barely surviving and building something that lasts.
Domande frequenti
- Do I have to keep complicated accounts?
- No: for internal management, a few entries (revenue, material cost, other direct costs, time spent) recorded consistently on a simple sheet are enough. Proper tax accounting is something else and should be handled by your accountant.
- Why isn't knowing my revenue enough?
- Because revenue isn't profit: after materials, costs and time, the real margin can be very different. Workshops that seem to be doing well sometimes earn little, and vice versa. Only by tracking margins do you discover what's actually worth your while.
- How often should I update the books?
- Right after each workshop, while the data is fresh: five minutes per session. Consistency matters more than absolute precision: better a light method you actually keep up than a perfect system you abandon.
- What are these numbers actually good for?
- Deciding better: where to raise prices, which workshops to push, where to cut waste, which experience costs you too much time compared to what it earns. They're clues for strategy, and a useful basis to bring to your accountant too.
On Handsome, bookings and payments are tracked in one place: a clear basis for thinking about costs, margins and prices.
Keep your takings and bookings in order with Handsome
