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.
This is one of those pieces of advice that seems so obvious but I constantly forget. Seek out experts. In an earlier post I wrote about no man being an island. When I wrote about this my emphasis was emotional support, this post is about practical skills. You should look for people who know things …
I love learning how others organise themselves in order to set themselves up for success. We’ve all (well ok so some of us) have heard the phrase, even Beyonce has only 24 hours in a day. However I actually have no idea how she spends her average day. How do busy, successful, seemingly thriving people …
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. …
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
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.
One reply to “All The Costs”
Pingback: Why I'm Selling Face Masks ⋆ Mummy's Muse
Related Posts
Seek Out Experts
This is one of those pieces of advice that seems so obvious but I constantly forget. Seek out experts. In an earlier post I wrote about no man being an island. When I wrote about this my emphasis was emotional support, this post is about practical skills. You should look for people who know things …
Chief Operating Officer
I love learning how others organise themselves in order to set themselves up for success. We’ve all (well ok so some of us) have heard the phrase, even Beyonce has only 24 hours in a day. However I actually have no idea how she spends her average day. How do busy, successful, seemingly thriving people …
New Designs Loading…
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. …