How to Add Success to Your Financial Formula | Sarah Delevan | Sarah Delevan Consulting
Honest Ecommerce · with Sarah Delevan · November 29, 2021 · 34 min
Summary
This episode with financial consultant Sarah Delevan provides e-commerce operators, especially those in CPG, with a clear framework for financial success. It emphasizes understanding key financial metrics, strategic pricing beyond competitor-matching, and calculating ROI for all expenditures, enabling brands to build a profitable and sustainable business model.
Key takeaways
Implement a financial model early on to understand the costs of operation and growth across different sales channels (online, brick-and-mortar, wholesale).
Don't price products solely based on competitors like Amazon; instead, base pricing on your internal costs, desired profit margins, and perceived value to avoid undercutting your own profitability.
Focus on key performance indicators (KPIs) relevant to your business model to measure financial health and guide strategic decisions.
Before scaling, ensure a solid product-market fit and a clear understanding of profitability, as throwing money at an unproven concept is unlikely to yield returns.
Evaluate the ROI of every investment, from marketing to inventory, to ensure capital is allocated efficiently towards growth and profitability.
On this podcast, we talk about the pitfalls of pricing, how to analyze your business in a “bird’s eye view” even if you’re not a CPG brand, why you should consider returns on all your expenses and so much more!
What does this episode say about finance & fundraising?
Implement a financial model early on to understand the costs of operation and growth across different sales channels (online, brick-and-mortar, wholesale).
What does this episode say about product & merchandising?
Don't price products solely based on competitors like Amazon; instead, base pricing on your internal costs, desired profit margins, and perceived value to avoid undercutting your own profitability.
What does this episode say about dtc strategy?
Focus on key performance indicators (KPIs) relevant to your business model to measure financial health and guide strategic decisions.
What does this episode say about founder & leadership?
Before scaling, ensure a solid product-market fit and a clear understanding of profitability, as throwing money at an unproven concept is unlikely to yield returns.
What does this episode say about finance & fundraising?
Evaluate the ROI of every investment, from marketing to inventory, to ensure capital is allocated efficiently towards growth and profitability.
