Managing Cash Flow

"I like to do 50% off the top of any current excess to savings because we're always gonna need it. Savings saves us for when for some reason, we did not do enough sales to make rent."

Danielle Mullen, Semicolon Bookstore and Gallery

Listen 🎧 : Danielle walks us through how she manages cash flow for her business. Semicolon Bookstore and Galleryis a Chicago based, black woman-owned bookstore and gallery space. After receiving a cancer diagnosis in 2019, Mullen knew it was time for a change that would require less travel. A curator by trade, she began curating books instead of art. The word "semicolon" would be the final touch. For authors this is a point where they can choose to end a sentence or move forward - the perfect symbol as she moved forward to create something new.

She says the business manages its cash flow through four accounts:

One account holds invoice money and from which she pays bills

One account holds store sales money, from which payments for rent and store bills are drawn .

A secondary payroll account holds money from bulk orders and covers payroll

Finally, a savings account.

Mullen says this system provides her with a holistic view of money going in and out of her business, and helps her better manage the bookstore's cash flow. She is able to catch any changes in these four areas quickly, and forecast any changes she may need to make.Check out Semicolon Bookstore and Gallery's website for more