Planning a business is the foundation that can determine whether your venture will succeed or not. And this does not only refer to one aspect. It encompasses a lot of things. It is similar to preparing ingredients in order to come up with a delicious and presentable dish on the table. That’s how business planning is all about, but more complicated of course.
Determining the cost and value of what you will market is one way of planning before you launch your business in public. You basically need to know the total expenses of everything used and will use for the business. There are the costs of materials, wages of employees, rental fees of space (if in case you do not have your own work or business place), utility bills, equipment, and other related expenses.
What you must avoid when setting a price for each item or service you offer is going above the average prices. Remember that you are going to compete with other manufacturers, companies, or small time entrepreneurs. You want more customers at the end of the day, too. So your sales price must be affordable for customers and much cheaper than the offers of other businesses.
The Packaging and Distribution
Now, your business may involve concrete items, and not solely services. Let’s say you want to sell a new brand of bath soaps. A single of these is weighed in grams. They can be really heavy. You need to sort out the best way to package them.
There are two things to think about when it comes to packing and distributing your products. First is that you pack items in a way that they will look presentable and eye-catching because the overall appearance is one key to attract customers.
For example with soaps, you can use translucent packaging so customers can see the actual color and design of the product. You may also use paper that is wrapped around the soap bar but only the middle part. It also works if you can pack soaps partially and let customers have a free smell of its scent. Remember this: how you pack your products can make or shrink sales.
Business Planning: Cost and Distribution
Secondly, you must consider the effort of packing products. If it is going to demand the time of 5 or more people, this means it’s a pretty hardwork. You do not want to keep hiring more employees as this can call for more money to pay out. But you may choose to limit manpower just to cut down expenses as much as possible. Another cheap alternative is that you find a company that provides packaging services. You can save more money here in terms of labor costs.
Remember that as a start-up, your business must minimize all costs and expenses as much as possible.