So, you have a GREAT idea?
Starting a new venture is both exciting and daunting; so many possibilities and points to consider in the development of your vision and idea.! Robust planning at the outset is a fundamental and key necessity in the successful launch and sustainability of your start-up. My favourite quote of all time is ‘Luck is what happens when preparation
meets opportunity’ and it could not be more appropriate for entrepreneurs and at the beginning of the new venture journey.
The cornerstone of any business is its financial model and feasibility assessments. You can have a great idea, but if the numbers don’t add up you’ll be left with losses and the business will not be sustainable. You want to make sure you give your dream the very best chance it has to succeed. In this module we will consider the following key points in more detail.
Funding Assessment: Do you have seed capital and where is it coming from? (Loan, savings?) Do you need funding? Consideration of how much seed capital is needed in order to generate revenue, which results in sustainable business models.
Financial Feasibility Study: A feasibility for your ‘bundle’ of product offerings together to see how revenues and profits flow. Working out which products will be sold and for what prices is easy using my custom made financial feasibility template. We will use this to build your bespoke feasibility together. Factoring in all costs into your product price. Predicting sales percentages and feeding this into your feasibility.
Pricing Strategy: Making sure you factor in all costs (including packaging and shipping) into your product price. Predicting sales percentages, i.e what portion of the stock will likely be sold on sale at lower prices than the regular retail or wholesale price and factoring this into your financial feasibility. Pricing needs to be at the correct level for the target market you’ve chosen.
Accounting: Bookkeeping, invoicing, tracking sales targets. Outsourcing or doing this yourself? Even if you outsource, you need a structure in place for invoicing to make it easy to keep the information up to date. It is also important to making to quickly access sales figures for each customer.
Financial Modelling: Establishing a robust cash-flow and projecting forward with (0.5 hours):
Re-investment of profits
New funding in the form of VC, Government grants, Angel lenders or Crowd funding..