As I wait for fabric to be sourced to produce new samples, I’ve found myself building out cost models – again. It made me realise how honest you have to be with yourself to build these models. Models that account for all of your costs pre-sale.
It’s SO easy to not account for everything. When you account for all the costs, sometimes the numbers don’t look as pretty. Everyone likes a spreadsheet or set of numbers that leaves you feeling warm and fuzzy. As I built the tables, every once in a while I remember another cost. Now we’ve officially Brexit-ed, no matter where you’re importing from, you’ll need to add Customs (well I’m doing this as a precaution for the time being). Then there’s VAT which you pay on the total value of what you’re bringing in + shipping + insurance!
It’s a sobering exercise. But a necessary one. It actually reminds me of times when I’ve built financial forecasts in my personal life. Again, sometimes you don’t want to come face to face with how much you spend on coffee shop coffees…or takeaways! Or other random purchases. However, the sooner you look at the numbers in the cold light of day, the sooner you can accept / adjust or move on.
A few – not even all – of the columns from a recent costing/target price exercise.
These exercises are beyond valuable. They make me more informed when speaking to suppliers and give me cost parameters within which I can explore certain ideas.
In my opinion these spreadsheets are a must when it comes to planning costs for a new business.
A big dilemma for me starting out on this journey is what to do in terms of marketing and communication before I actually have a product to sell. I’ve struggled with this because I thought, ‘Is this weird? To talk about a brand where no product exists?’ I’ve been waiting for ages, ‘What if I …
Build the perfect product. When starting a business, it’s easy to be obsessed about the product and leave marketing as an afterthought. I guess it depends on your motive for starting in the first place. If it’s to bring to life this incredible idea, solution or creation, it’s easy to want to focus on that. …
I’m currently back in the design process. I’m working on new prints and colourways. Whoa..that’s great, but you haven’t even released your existing designs I hear you say. You’re correct. However this is one of the most time consuming, best and worst parts of this whole process. Nonetheless, it’s a part I care deeply about. …
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All The Costs
As I wait for fabric to be sourced to produce new samples, I’ve found myself building out cost models – again. It made me realise how honest you have to be with yourself to build these models. Models that account for all of your costs pre-sale.
It’s SO easy to not account for everything. When you account for all the costs, sometimes the numbers don’t look as pretty. Everyone likes a spreadsheet or set of numbers that leaves you feeling warm and fuzzy. As I built the tables, every once in a while I remember another cost. Now we’ve officially Brexit-ed, no matter where you’re importing from, you’ll need to add Customs (well I’m doing this as a precaution for the time being). Then there’s VAT which you pay on the total value of what you’re bringing in + shipping + insurance!
It’s a sobering exercise. But a necessary one. It actually reminds me of times when I’ve built financial forecasts in my personal life. Again, sometimes you don’t want to come face to face with how much you spend on coffee shop coffees…or takeaways! Or other random purchases. However, the sooner you look at the numbers in the cold light of day, the sooner you can accept / adjust or move on.
These exercises are beyond valuable. They make me more informed when speaking to suppliers and give me cost parameters within which I can explore certain ideas.
In my opinion these spreadsheets are a must when it comes to planning costs for a new business.
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