I’ve been really moved and encouraged by a lot of the feedback on the recent decision to cease production on most of the items we’ve manufactured until now in McKean Studio. I’ve received messages, emails and Instagram DM’s and they’ve been so supportive of this decision and sharing in our hopefulness for the future. It’s been a leap, but a leap up! The past month since announcing the changes has been a little strange as I’ve been giving more consideration to what will happen from here. It’s currently the End of Financial Year in Australia, and I love a mid-year check in more than most — I think of EOFY as Business Christmas; a race to the finish line to wrap things up, getting the books all tidy and projects finished or starting to make the most of new budgets! I also bought myself a new pair of shoes to celebrate another year in self-employment land, so it really is almost like Christmas! ;)
I’ve spent some time over the last week going through the books and looking at where money has come in - and gone out again - in the business. Working on so many different projects in a year means that there are several different income streams, and it’s interesting to see what I focussed my energies on and how this translated to growth. In the last financial year, I’ve had income coming in through: Royalties from my books, Licensing Fees from commercial projects that have used my artwork, Fee Income where I’ve completed design work and charged a fee for those jobs, Sales from the web store, Market Sales from Markets and Events, Wholesale Sales from my first big foray into wholesaling products last year.
The decision to stop production of items will mean eventually those ranges will be sold out, and I won’t have stock to replace it with. Currently, the web, market and wholesale contracts have accounted for 78% of the income coming into McKean Studio… looking at these figures on the page was a big ‘gulp’ moment, thinking about how I can recoup that next financial year in new ways, after cutting out such an enormous portion of what has let my business run how it has so far.
I’ve been looking to the new financial year with excitement (well, trying to trick my brain into excitement) and have been listening to some very well timed podcasts around decision making (boldly!), and why bigger isn’t always better. In my last post about the changes coming to McKean Studio I touched on the idea that in business the goal is always growth — but the same focus is rarely given to what happens once that growth is achieved. Invariably, once growth happens there are other constraints that have to give to accommodate that growth, and they end up costing in other ways (be it time, energy or money). I’ve been taking steps in my business set up to streamline things, and make my systems less dependent on the physical studio space — in the hopes that as time goes on I can work from anywhere! I’m hoping that in the new year ahead as the production side of McKean Studio starts to wind up, that instead of costing me time or money in organising how best to service that side of the business, I’ll have more time to focus on the other areas of the business that I haven’t been able to give as much energy to previously. I’m looking forward to more illustration projects and starting on some other ideas I’ve had on the back-burner for a little while.
I’ll be back next week with some exciting news on another project soon to be released, but in the meantime, thank you for reading and for supporting the work I do. I’ve felt a wonderful sense of community over the last month and truly value every comment or message of support.