Emerging CPG Basic Pillars

How do you order the basic pillars of business in emerging CPG?

1. Product

(make something, get feedback, iterate)

2. Sales

(tell people, make it pretty, and trade it for their money)

3. Money

(is this is a viable business?)

Between product and sales - 1)a) - is basic compliance:

Business structure

Business bank account

Sales tax, if necessary

Payment acceptance

Once that's in place,

basic bookkeeping is your first step

in managing your money.

Look at your COGS actuals -

Fully burdened (freight, customs, labor, etc.)

Calculate your per-unit costs.

Chart a path to profitability.

Review each production run.

Check for issues.

Work with suppliers to reduce costs

as volume grows.

Review your financials at each month-end,

and ensure the inventory matches your counts.

Tell your bookkeeper you want accrual-basis

(link in comments)

3)a) is compliance - paying taxes.

Very important -

But not the reason to keep accurate books.

Get a good bookkeeper

and use your financials to chart the course of your business.