Let’s talk about one of the most important parts of your new job: managing cash flow. When starting out as a brand new broker, most likely your biggest concern is money — and how you don’t want to lose any. So let’s go over the basic concept of managing cash flow when it comes to being a reseller.
Cash flow is just the money coming in and going out of your business. As a broker, you’ll buy tickets and sell them for more money to make a profit. Sounds easy, right? Well, there’s a bit more to it.
How Cash Flow Works
- Cash In: This is the money you get from selling tickets.
- Cash Out: This is the money you spend to buy tickets, plus other costs related to your business (i.e. advanced software tools, faster Wi-Fi, more powerful computer, etc.).
The goal is to always have more cash coming in than going out. Simple, right? Well, it takes practice — a lot of practice!
Why Cash Flow is Important
Picture this: You’ve just bought tickets for a big concert that’s happening in three months. You’re sure the tickets will sell quickly, but the show is far away. Meanwhile, you still have bills to pay, and you might want to buy more tickets for other events. This is why managing your cash flow is extremely important.
In the world of ticket reselling, “cash is king.” Without enough cash, you can’t buy tickets when good deals come up.
Tips for Managing Your Cash Flow
Make a Cash Flow Plan
Think of this plan as a map for your money. It helps you see when you’ll get paid and when you’ll need to spend money. Here’s how to do it:
- Write down all the money you expect to make (ticket sales).
- Write down all the money you expect to spend (buying tickets, fees, etc.).
- Subtract the spending from your earnings for each week or month.
- This will show you when you’ll have extra money or when you might need more cash.
Save Some Cash
Remember that concert that was mentioned earlier? Having some extra cash saved up can help when you’re waiting for tickets to sell. Try to save enough money to cover at least a month of your expenses.
Be Smart When Buying Tickets
It’s easy to want to buy every popular ticket, but think carefully before you buy. Ask yourself:
- How fast can you sell the tickets?
- How much money will you make?
- Can you afford to wait until they sell?
Mix Up Your Inventory
Don’t buy only one type of event. Buy tickets for different things like concerts, sports, and theater shows. This way, you’ll have tickets to sell all year long, which helps keep your cash flow steady.
Keep Track and Adjust as Needed
Managing cash flow isn’t something you do once and forget about. You have to watch it all the time. Check your actual cash flow and compare it to your plan. This helps you see patterns and make better decisions later.
Remember, every successful ticket broker started where you are now. With time and practice, you’ll get better at managing your cash flow. Soon, you’ll be handling many events and making a nice profit!
