Keeping Track of Expenses Leads to Profits
Dimnoré is finally getting ahead, thanks to putting into practice what she learned from the program about “SMART” marketing goals (Specific, Measurable, Achievable, Relevant, and Time-based). It was only when she learned how to keep track of her small business expenses that she realized she’d doing a great deal of work for not much profit, and how to do better.
Dimnoré belongs to a Savings and Internal Lending group. She took out a small loan to buy néré tree seeds to start making and selling soumbala (a fermented, protein-rich condiment, sold in balls or patties and used in a variety of dishes across Africa). Her original goal was at least to repay what she’d borrowed, plus interest. With her loan of $45 she grossed $54, and felt she’d gained, but when she learned how to subtract expenses, she was shocked that she’d netted only 95 cents. Or, as she put it, “I realized I was gaining nothing but suffering from all my work.”
Since then, she keeps track of all her costs, and is always finding ways cut down on cash outlays. For instance, instead of spending money on public transportation and the day’s food to buy bags of seed at the city market, she asks a friend who is going anyway to get them for her. With her newfound earnings she’s been able to pay off her loan and has bought sheep to fatten for sale. She feels she’s becoming a SMART business woman, indeed!
Caption: Fattening sheep for resale
Burkina Faso Namentenga Program
Led by Catholic Relief Services