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Mychameleon.com.au founder Giselle Farhat offers six tips for a successful start-up.

1. Financial Planning

Create a budget as well as short and long-term forecasts. Look at your worst, best and expected scenarios for costs and sales. This forms a starting point for the business and allows you to reference back once you are up and running.

2. Adequate startup capital

This is essential in keeping the business running. Start with more capital than you think you need and try not to tie it all up in the first year of operation. With a solid working capital position your business will have a level of resilience in the harder times and allow you to explore opportunities that come ahead.

3. Watch overheads

Keep your expenses and overheads as lean as possible. It's a fine balance between servicing the requirements now versus preparing for the future. Find new and innovative ways to keep your costs down.

4. Price it right

Set your margins right from the start. Whether it is a product or service, price it well while maintaining market competitiveness. Account for overheads and other appropriate costs and see at what level of sales you are likely to hit a profit. This is a key to making a profit.

5. Test, Track and Analyse

Monitor your cashflow, expenses and revenue on a weekly basis, have a rolling forecast to track against budgets. If financials are not on track, analyze why and make the necessary changes to get back on track.

6. Inventory management and planning

Aim to turnover stock in the shortest amount of time to minimise the need to discount, maximise your margins and ultimately increase gross profit. Particularly in fashion industry with seasonal product inventory management is key. If not managed effectively stock can become obsolete and discounting will reduce overall margins and the ability to make a profit. 

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