A Simple Plan
Sometimes complicated situations are actually quite simple. We show how a seemingly difficult business can be modeled in one line.
How You Show Up is Important
How you present yourself will make or break your chances with investors. Everything you do sends a message. Be sure it is the right message.
Forecasting Your Business
Understanding the range of likely outcomes is critical to running a business. Companies need an accurate model of their business dynamics.
You May Not Expense Your Inventory
Expensing inventory is only permitted if you are doing the same in your accounting system. You can’t tell the IRS one thing and do another.
You may not need an ERP system.
ERP systems combine many different functions under one roof, for a steep price. If you can cobble together the functions you need and connect them, that may suffice.
The Purpose of Accounting
The purpose of accounting is to provide an informative picture of the profitability of the business for investors. Arranging income and expenses in a helpful and accurate way is the key. This is particularly difficult in the CPG world.
What Investors Want
This blog entry discusses the most critical business metrics for success in Consumer Packaged Goods (CPG) businesses: Gross Profit Margin, Trade Spend, and Gross Profit. Controlling these are a requirement for investor interest and for a healthy business.