The cost of doing business
The simple truth is that Cost of Goods Sold (COGS) is the reality, when everything is the dream. The balance is the integrity of the quality of your product, priced correctly for your target audience, and with sufficient margins where you, your distributor and retailer all make a profit. Creating demand and dialing the right about of volume is the dance.
The retail game: ins and outs
For nubies to the food industry, shelf sets, slotting fees, quotas, promos and buybacks are a mystery. But “behind curtain #2” there are more hurdles to getting your excellent product to market than you can possible image, so get your cross trainers out. Knowledge is everything. Understanding how retail works will be the engine of your success.
Making your money last
When to borrow, what to borrow? Partners, investors, equity plays? So much to think about and all at a moment when your brand is just taking off; needs to grow or innovate; warrants a social media push; should play at a trade show. There are always good reasons to spend money and therefore always the need for criteria and assessment.
Growth, it’s what you want, but how do you handle that? Do you go deep into one geographic region or consumer segment? Do you make a big online play and drive everyone to buy there? Line extensions, innovation, keeping interesting – when, what, how much? All good questions based around the heart of the brand and the love of your consumers.
Building a team
I can tell you from my heart, that surrounding yourself with people of excellence and passion will be your smartest and most satisfying move. These people will help you, teach you, sustain and grow your brand and come up with things that you hadn’t thought of. Your job, is to be the leader, motivator, decision-maker and the one who ultimately carries the responsibility of outcome. Really, it’s a good thing!