First Steps to Get Your Market Finances in Order

A Mini Guide for Vendors, Makers & Market Sellers

If you’re selling your products at pop-ups, craft fairs, farmers markets, or community events — congratulations! You’re officially a business owner. But even small businesses need financial structure. The earlier you put good habits in place, the easier it is to grow, stay compliant, and avoid stress at tax time.

This guide walks you through the key financial habits and systems that will help you build a strong foundation, make smarter decisions, and treat your venture like the business it is.

Before you dive into tracking and organizing your money, take a moment to define your goals:

• Are you doing this for fun, as a hobby with a little side cash?

• Is it a part-time gig you hope to grow?

• Are you aiming to turn it into a full-time business?

  
  

Your goals will influence how much time, effort, and structure you want to put into your finances. Knowing your "why" helps you track the right numbers and measure progress.

Here are the first steps you should take to get your market finances in order:

1. Open a Dedicated Business Bank Account

Even if your business is just getting started, separating your money is key. A business checking account helps you:

• Stay organized

• Track income and expenses easily

• Present yourself more professionally

What you might need to open an account:

• EIN or Social Security Number

• Business name registration (DBA)

• Government-issued ID

Online-only business banks can also be great options for solo vendors.

2. Separate Personal and Business Expenses

Do not mix your Target runs with supply purchases on the same card! Keep business spending separate — always pay for business-related items with your business account or a dedicated card. This avoids confusion, simplifies tax prep, and protects you in the event of an audit.

3. Log Every Sale (Even Cash Ones!)

Whether you're taking payments via Square, Venmo, or just cash, make sure you record every single sale.

Consistent tracking helps you:

• Understand which events or products perform best

• Calculate true profits

• Avoid missing income at tax time

4. Track All Business Expenses

Every dollar counts — and may be tax-deductible! Be sure to log:

• Booth and vendor fees

• Supplies and packaging

• Marketing and signs

• Equipment (like tents or tables)

• Mileage (to and from events)

• Payment processing fees

Keep receipts and note details for each purchase.

5. Set Aside Money for Taxes

A good rule of thumb is to set aside 20–25% of your profits in a separate savings account. That way, when tax time rolls around, you’re not scrambling. You might not owe that much, but it’s better to be safe.

Pro tip:

• Use a high-yield savings account to store tax money and earn a little interest

• If you're making steady income, consider paying estimated taxes quarterly

6. Use a Simple Tracker (or Hire Help)

Don’t wait until the end of the year to make sense of your sales and spending. Use a spreadsheet or bookkeeping software — or better yet, work with a bookkeeper who understands market businesses. The more organized you are, the less time and stress you'll have at tax time — and the more clearly you'll see how your business is performing.

 7. What to Include in Your Expense Tracker

Make sure your tracker includes these columns:

• Date

• Expense Description

• Vendor (who you paid)

• Amount

• Paid with (Cash / Card / Bank Transfer)

• Category (Booth fee, Supplies, Mileage, Equipment, Fees)

• Notes (optional details or context)

8. What to Include in Your Sales Tracker

For each sales day, record:

• Date

• Event or Location

• Cash sales total

• Credit/debit card sales total

• Tips received

• Booth fee paid

• Notes (what sold well, what didn’t move, weather, foot traffic)

• End-of-day mileage (if you drove)

9. Pricing Your Products Properly

Too many vendors underprice themselves! Here’s a simple formula:

Cost of Goods (COGS) + Time + Overhead + Desired Profit Margin = Retail Price

Make sure your price covers:

• Supplies and materials

• Booth fees and travel

• Marketing and packaging

• Your time and expertise

Pricing with intention helps you stay profitable and sustainable.

10. Plan for Slow Seasons & Growth

Markets are often seasonal. Make a plan for:

• Saving during high-earning months

• Managing inventory and cash flow during slow periods

• Reinvesting in your business (equipment, software, education)

Growth might also mean branching into:

• Online sales (Etsy, Shopify, etc.)

• Wholesale or consignment

• Workshops or classes

Final Thought

Running a market business is rewarding — and it can be profitable too. But only if you treat it like a business from day one. With a few systems in place, you'll feel more confident, stay on top of your money, and be ready when growth opportunities (or tax time) come knocking.

Need help getting started or staying on track? MMF Business Solutions helps vendors and makers set up simple systems and manage their books — so you can focus on doing what you love. Ask about our special package that includes personalized setup training and quarterly reviews tailored for market sellers.

Remember: the better you know your numbers, the better you can grow.