The best way to think about this is a profit and loss statement, starting with revenue at the top and net income at the bottom. A customer flows from the top, acquired through marketing spend, and everything in between to deliver that product to them, with profit left over, and all the key metrics [...]
This is a Quora questions I was asked. Here is my answer I did a quick search in my industry source and did not find anything that specific. Here are some quick metrics to make a guess: As of 2016, they are north of $300 mm in sales; Unprofitable; Raised $220 mm to date from [...]
I want to cover fundraising and investors, and even if you do not plan to raise money, this discussion has important implications for giving equity to cofounders, employees, advisors, consultants or partners. Investors invest to get a return on their investment, and the predominant way in which they get a return is when their investment is [...]
In the early days of your startup, there are three revenue generating strategies that you want to try and adopt into your business. First, try to maximize the price of your product to get as much revenue a possible from a single customer. As an example, if your goal is $1000 in gross sales a week, at [...]
If you ever plan to take on investment or bring on co-founders, employees, advisors, consultants or partners and you want to share equity with any of these stakeholders, you need to have a capitalization schedule. The cap schedule helps you plan out how the equity in your company gets distributed, to whom, when and at [...]
Question: I am currently working on the development of an e-commerce that sells healthy dry food. What are the typical margins? I'm launching a webshop with healthy products, nutritional supplements and natural cosmetics from different distributors. What is the typical gross margin for this kind of products? What percentage of my budget should I allocate to marketing? [...]
The KPIs for CPG depend on the channels sold. If sold direct-to-consumer, the top metrics I track include: Marketing spend; Message engagement rates (email, social views, social shares, hashtags, etc); Click throughs; Conversions; Average Order Value; Cost per click; Cost per visitor; Cost per order; Cart abandon rate; Cancels/Declines/Returns rates; Return on advertising spend (ROAS) [...]
Markup depends on the retail channel in which you sell. Specialty/natural channels run 50-65%, drug is 45%, grocery is 35%, mass is 30%, and club is 14%. If you sell direct to consumers, then the anchor price on a single unit of your product would equal that specialty/natural channel price. In my experience and opinion, [...]
This is a Quora question. This is my answer. The general goal in consumer products is 20% EBITDA (earnings before interest and taxes) profit margins. But these are commodity products and the category is probably competitive, so it's possible EBITDA is less, may 10%-15%. Cost of Good Sold (COGS) on a product like this is [...]
When I look at CPG opportunities, my goal is to know the following: 1. Is this product/idea differentiated in the marketplace and how easy is it for the competition to copy/replicate that differentiation? 2. Does the team know what they are doing to grow the opportunity? 3. What's the plan to get the opportunity to [...]
