Module 6 - Making it Happen
8. Chapter 6 Wrap-up
Key take-aways
- Having a great idea or nailing the design is not enough. You also need to consider how the economics are going to work and how to handle production, packaging and logistics.
Time to stop and think: how do economies of scale apply to your business? Do minimum order quantities (MOQs) apply for any of your supplies? Some processes can start making sense at larger volumes, how will you manage that? Are your potential suppliers financially robust and do they have good safety and quality assurance processes in places? Do they have the certifications/accreditations that your customers will require? Do you want to be in charge of manufacturing yourself or should you outsource it? What about packaging, what does your packaging need to do and how many different types of packaging do you need? What is the environmental impact of your packaging (think about inputs and after-life)? Do you want to keep logistics in-house or outsource them?
- Sales are the lifeblood of any business so having a structured approach is essential and requires continuous effort. You need to make sure you understand your customers, their needs and habits and that your strategy aligns to these realities.
Time to stop and think: are you focused on selling to other companies (Business to Business – B2B) or directly to end consumers (Business to Consumer –B2C)? Are your customers likely to be making their decisions emotionally or rationally? Are they buying for themselves or for others? When will they be buying this type of product or service? What information do the customers need in order to make a purchasing decision? How can you make this information easily accessible for them? What is your route to market? Will the customers be buying directly from you or indirectly through an intermediary, for example a wholesaler or a retailer? How much do you need to sell in order to achieve your goals?What does this mean in terms of units sold or customers brought on and retained? What is your brand’s positioning in the market? What are your trading terms (pricing, payment terms, delivery schedule, level of service)?
- Most business fail because of cashflow problems so make sure you know how to manage this effectively by maintaining a financial plan, ensuring that you get paid on time, spending money only where necessary and establishing good accounting practices.
- Wider organizational management on areas such as project management, team communication and design will help you deliver a better product/service, be profitable and scale more effectively.
- Accelerators & incubators can be a great springboard for your business, but you need to carefully consider what you want to get out of them and if they match the stage of growth you’re at.
Now, let’s get active!
- Develop an operational project plan on how to
bring your product or service to market. Use project management tools (e.g. Gantt charts and the Stage Gate Model.) to lay out different tasks that need to happen and timings for each of these. - Research potential suppliers and consider how you’re going to handle manufacturing and logistics. Start researching potential partners if you decide to outsource either of these activities.
- Outline your sales strategy. This means defining your sales goals, target market and sales channels, positioning and pricing, as well as who in your team is responsible for what.
- Get your accounting and bookkeeping sorted.
Look into professional software options such as Xero and Kashflow and get an accountant/bookkeeper in place.
Additional Resources
Plastic packaging has received a fair bit of backlash. To brush up on your knowledge, head to:
CEFLEX (an initiative looking at creating a circular economy for flexible plastic packaging)Â
A Plastic Planet and the Ellen MacArthur Foundation’s New Plastic Economy.
For more general packaging information, have a look at the UK’s WRAP initiative, it’s not solely focused on packaging but a lot is covered.
The EU’s packaging and packaging waste Directive is probably worth checking out: http://ec.europa.eu/environment/waste/packaging/index_en.htm
The importance of cashflow cannot be overstated so you might want to check these out:
How to forecast your startup or business’ cashflowÂ
https://www.brixx.com/how-to-forecast-your-cash-flow-as-a-business-or-startup/Â
Profit and Loss Statement: A Guide for Small Business Owners
https://www.fundera.com/blog/profit-and-loss-statement
Stay on top of your sales:
7 modern sales forecasting strategies for startups
https://blog.close.io/sales-forecasting-strategies