Thoughts on Turnover, Business Perspective & Why We Shouldn’t be Comparing Apples and Oranges.

One thing though that I’ve been thinking of off late is turnover. Turnovers are very different things to different people, to different businesses. This should go without saying, really, just the same as what’s successful and what someone needs to live on also differ wildly. And yet somehow it’s till used as a measuring tool. At best it’s naive to compare each other’s businesses based on turnover alone, and at worst it’s a huge trap that can lead you towards a messy head.

From my perspective, I’ve never wanted to grow grow my business. I don’t want a business for the sake of having a business and I’ve always tried to keep things simple, streamlined, and not let the business side of things take over. I haven’t always managed that, but it is my goal.

And given how we life, one very firm decision I’ve made is that there will be no tangibles. With good reason. We live in vehicles that have a big risk of condensation and damp. We’ll be applying for residency in a country that doesn’t have the most reputable postal system. I don’t do shows and I’m not in a position to be lugging stock around. But for the most part, we don’t have the money to invest in; food on the table comes first.

My business has always been this way – it started online from blogging, and although I have most of my books available through POD and have worked with print distributors for my printed patterns, 95% of my turnover comes from digital sales. That’s more than enough to tell me what I need to know. (the other 5% comes from teaching fwiw)

In my almost 12 years of doing this, there have only been 2 years where I didn’t see growth. The first was the year when we were fighting eviction and Aran was critically ill; the second was the year after that, when my lack of creativity the previous year became apparent. Otherwise, my business is steady and reliable despite not having what many would consider a high turnover. My growth has been slow and steady rather than rapid, and that makes me feel more confident that I’ll be around for a while yet. My biggest costs are people, and that adds to that feeling of sustainability – I’d sooner put money in pockets than in boxes of stuff.

That’s the thing with tangibles – they cost money. And naturally any business dealing with tangibles, on whatever level, will see their turnover rise because of them. Even if the average print run for a book costs in the region of £5K, there are extra associated costs with tangibles, and they all have to be recovered through sales. And that in turn will push up the turnover.

And from that basis alone, you can’t compare a solely digital business with one that deals with tangibles, even if only in part.

Then there are other aspects to consider. Many designers have grown their businesses in very different ways, outsourcing much of the work quite early on, taking a more formal approach, and that means that they’ve got to sell that much more to be able to cover those extra costs and still leave themselves room to breathe. And that in turn requires different marketing approaches or different production methods, or both. And as is the nature of growth, it’ll keep on going that way.

And while those turnovers are higher because they need to be, it doesn’t necessarily mean that those designers are more successful; it simply means they’ve sold more patterns or books or products. Because they have to. Success is another of those subjective things.

The thing is, what bothers me about all this and what has led to me trying to make sense of it all, is that in the eyes of a few it becomes a popularity contest. I know I’m not alone in feeling inadequate at times when you start comparing numbers. But how on earth we can fairly and squarely compare? And really, why would you want to?

We are each unique in our styles, our methods, our approaches and our presentation – none of these are comparable. And that is the beauty of what we do.

(how I wish I had confidence! But I wasn’t programmed that way, and it takes days like these and words like these to help me come full circle again. I lose a lot of time to depression and anxiety, and that in turn is something else to be factored. And given life as it is, I’m going to give myself a pat on the back and pour a glass of wine.)

eta/ this post was updated on 11th March 2022 with a new post graphic. The image shows the crown of my Lenina pattern.

Woolly Wormhead

Woolly Wormhead is an internationally reknowned knit designer, specialising in Hats, technique and construction. Their patterns and techniques have been used by thousands of knitters worldwide. Join The Woolly Hat Society to be the first to learn of their latest projects and special offers!

14 Comments

  1. Heather Murray

    I completely agree, the only way to measure your success is against your own definition of success. Trying to measure your success by someone else’s criteria is completely meaningless since everyone has different goals, values, and interests. Success will look different to different people.

    Keep on keeping on 🙂

    Reply
    • Woolly Wormhead

      yup!

      And yet it’s surprising how often it’s done… and then you get pulled into it and it’s hard to shake it off.

      Reply
  2. Neulisti

    Everyone has a different definition on what success means to them. I’m just starting out with knitwear design and every single sold pattern is a huge success in my mind.

    Reply
    • Woolly Wormhead

      good luck with your knitwear design!

      My advice for new designers is to always do what makes you happy, not what you think you should do 🙂 (which you are totally free to ignore! 😉

      Reply
  3. Ruan Peat

    My mum ran a multi million pound turnover business, she was never off ill (even when she was) she rarely took holidays (again odd days and never a proper one) at one point she had a staff in four figures and the strain to keep it going for everyone else. Some years she didn’t get a wage when all was paid, just some! No one else saw the stress, the upset and the pain behind the scenes, I grew up knowing that I would not want to work for myself. The turn over was always vast, but lurched between bills due and bills not yet paid! By the time she retired she was worn out, and had health issues for the rest of her life from stress. Measuring success on turn over is not worth it, you are one of my favorite designers and I wish you long life, long work and raise a glass in celebration of your talent.

    Reply
    • Woolly Wormhead

      That sounds incredibly stressful for your mum, and also for all of you watching it happen! I can understand how it’s put you off running a business. Not taking time off when ill or not having a holiday all sounds familiar – I think that happens in all areas of self-employment and it’s not ideal at all.

      Thank you! 🙂

      Reply
  4. Margaret Corrigan

    I think you should read "Radical Homemakers" by Shannon Hayes. There’s a lot there about the economy of consumerism’s influence on how we view success and why breaking away from that model can save our sanity, families, and even the planet. Having the highest income or the highest GDP doesn’t make you the happiest and healthiest person or nation. It is possible to break away from this model that purposefully plays upon our anxieties and depressions to make money for a few while the rest of us feel like we’re on a hamster wheel. It sounds to me like you’re already doing this, and you shouldn’t compare your life work with an impossible standard that would likely leave you exhausted and missing time with your family.

    Reply
    • Woolly Wormhead

      I’ll look out for this book, thank you!

      Yes, we are mostly doing those things, both in my work and in how we life, but it isn’t always easy as you often feel as if you’re swimming against the tide.

      Reply
  5. Larissa

    Thank you so much for this post. I expect I’ll need to re-read it from time to time when I’m feeling uncertain about my own business. I’m so pleased you’ve built a business that works for you.

    Reply
    • Woolly Wormhead

      Thank you, I’m glad it struck a chord. We all need some assurance that we’re on the right path at times.

      Reply
  6. Nadia

    This post makes me want to travel all the way to Italy to give you a high five and a "hells yeah"!

    Running a small or medium-size business when people depend on you is stressful enough without the voices inside telling you that X or Y is doing things differently or selling more and that you don’t measure up. Be consistent at what you do, at a level you are comfortable with and people will respond. It’s hard sometimes in the thick of it to see just how far you have come. The only ‘stats’ that matter are those that pay the bills.

    Reply
  7. Diane

    Thank you for this honest perspective of your business.

    Although, I am not a business; I sometimes compare myself to the other blogging knitters out there and feel very amateurish at times. Thank you for making me realise that I should not lose sight of who I am…. an enthusiastic knitter who wants to share my love and passion for the KNIT.

    Reply
  8. Helen

    You hit the nail on the head. One of the aspects of running my own business that I find most stressful is when I start to compare my own business to other similar ones. Why do I do it – well I guess it is natural. Should I do it? No – there is no need. Thanks for the reminder of this 🙂

    Reply

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