THE POWER OF POSSIBLE :  A FINANCIAL LITERACY SERIES FOR GUYANA’S YOUTHS

592 GUARDIAN♣ACCOUNTABILITY♣INTEGRITY IN JOURNALISM♣GUYANA

THE POWER OF POSSIBLE :  A FINANCIAL LITERACY SERIES FOR GUYANA’S YOUTHS

---

Episode 3: The Side Hustle Isn’t a Business Until the Cash Is Visible

A side hustle can be a smart first step. It may begin with selling clothes, food, cosmetics or phone accessories. It may be braiding hair, doing graphic design, photography, tutoring, repairs, farming, delivery work, social-media management or creating content online.

For many young Guyanese, a side hustle is not just extra money. It may be a response to limited job opportunities, irregular work or the need to support themselves and their families.

But earning money is not the same as making a profit.

That is one of the most important lessons for any young entrepreneur: a side hustle becomes a real business only when you can clearly see what comes in, what goes out and what is actually left.

Sales Are Not Profit

Imagine you buy (20) phone chargers at GY $1,000 each. Your stock costs GY $20,000.

You sell each charger for GY $1,500. If all (20) are sold, you collect GY $30,000. It may feel like you made GY $30,000. You did not.

Your sales revenue is GY $30,000, but you first have to subtract the cost of the chargers— GY $30,000 – GY $20,000 = GY $10,000

That GY $10,000 is not necessarily your profit either.

You may also have paid for transport to collect the stock, mobile data to advertise, packaging, delivery, a market stall, online platform charges or electricity. If those expenses come to GY $4,000, your actual profit is:    GY $30,000 – GY $20,000 – GY $4,000 = GY $6,000

The lesson is simple: sales tell you how much money customers paid. Profit tells you whether the work is helping you move forward.

Know What Your Money Is Doing

Every dollar in a small business should have a job.

Some money belongs to the business because it is needed to replace stock. Some must cover expenses. Some can be set aside for growth. Only after those needs are met should you decide what you can safely use for personal spending. If you sell your last item and use all the cash for a weekend lime, you may have made sales—but you may not have enough to buy stock again on Monday.

Try to separate your money into at least three categories:

⇒ Stock and operating money: Cash needed to replace goods, buy materials, pay for delivery, data, transport or other business costs

⇒ Personal money: What you can reasonably use for food, transport, savings or household needs

⇒  Growth and emergency money: A small amount set aside to buy more stock, repair equipment or handle an unexpected problem

Keep a Simple Daily Record

At the end of each day—or at least each week—write down:

⇒  What you sold

⇒  How much customers paid

⇒  What you spent on stock or materials

⇒ What you spent on transport, delivery, packaging, data or advertising

⇒  Who still owes you money

⇒ How much cash remains

⇒ How much of that cash must stay in the business

A basic record can reveal problems early. You may discover that an item sells often but earns very little after costs. You may find that delivery is eating your profit. Or you may see that customers who promise to “pay next week” are holding too much of your money.

.Be Careful With “Pay Me Later”

Giving customers time to pay can bring more sales. But it can also create trouble.

If you sell goods today and the customer delays payment, you still need money to replace stock, meet bills and keep operating. Too much unpaid debt can cause a small business to fail even when demand is strong.

Before agreeing to credit, decide:

⇒ How much can this customer owe?

⇒ What is the repayment date?

⇒ Will you record the agreement in writing or by message?

⇒  What happens if payment is late?

⇒ Can the business survive if this money does not come back quickly?

Be polite, but be clear. Your business cannot grow if everyone else is using your money for free.

Price for More Than the Product

Many young entrepreneurs price an item by looking only at what they paid for it. That is not enough.

The price must help cover the full cost of selling: stock, ingredients or materials, transport, packaging, delivery, data, electricity, advertising, platform fees and your time.

For a service business, your time is not free. A photographer, designer, tutor, hairstylist, mechanic or caterer must account for preparation, travel, equipment, supplies and the hours spent doing the work.

Before setting a price, ask:

What did this product or service cost me in total Then ask:

What amount must I charge to cover those costs and still earn a reasonable profit? Do not copy another seller’s price without checking whether their costs are the same as yours. A price that attracts customers but leaves you unable to restock is not a winning price.

Borrowing Is Not Free Money

A loan can help a business buy equipment, stock or materials. It can help someone move from a small idea to a more stable operation.

But borrowed money must be repaid—usually with interest and sometimes with fees.

Before borrowing for a side hustle, ask:– What exactly will the money buy?

⇒ Will that purchase help the business earn more?

⇒ How much will I repay each month?

⇒ Can I still repay if sales are slow for one or two months?

⇒ What is the total amount I will repay, not just the amount I receive?

⇒ What happens if I miss a payment?

⇒ Am I using a formal, trustworthy lender?

Never borrow simply because money is available. Borrow when there is a realistic plan for how the business will earn enough to repay the loan without putting your household under greater pressure.

The next episode will look more closely at loans, interest and borrowing decisions. For now, remember this: credit should support a plan—not replace one.

Make the Cash Visible

 

Guyana’s economy is opening new spaces for enterprise. Young people may find opportunities in services, agriculture, food production, technology, transport, construction, tourism, culture and the wider supply chains growing around the country.

But opportunity can be lost when money is mixed up, stock cannot be replaced or a loan is taken without understanding the repayment burden.The goal is not to discourage young people from trying. It is to help them build something that can last

Learn More:

For a broader introduction to managing a microbusiness, the International Labour Organization’s Start and Improve Your Business (SIYB)programme offers practical entrepreneurship resources. 

Visit:

https://www.ilo.org/start-and-improve-your-business-siyb 

A useful companion video is the Khan Academy lesson on Revenue, Cost and Profit. It explains the difference between sales revenue, expenses and profit using simple examples. Search YouTube for:

https://youtube.com/shorts/zqD-s15ru0s?si=BASK5UgscqnlcNDO