Week 11 - Still searching for scalability
Action Items From This Week:
- Finish planning everything for Vancouver Select - Made a little bit of progress on this, in terms of contacting the venue and planning a layout. But for this, I still need to: Create groups for the competitors, print name tags, print scorecards, email both competitors and volunteers, assemble a volunteer giveaway kit, print awards and signs for competitors.
- Everything Black Friday/Cyber Monday - I made my stock order last week, it should arrive by exactly Black Friday. I've been slacking on advertising a bit. I know that we discussed doing this early but I've been really caught up mentally on the financials of the business. I still plan to advertise. Maybe I will have those up later today or tomorrow.
- Further financial breakdowns - This is where I spent almost all of my time. Michael and I made a plan so that at the end of every month there is a list of things I need to do to balance out the books. I haven't been expensing supplies use for example. I think this are is kind of where I need the most help. According to my books, expenses equal revenues. But why and how? (I'll discuss this a bit more in my problems and challenges sections)
- CANcube Custom - This went decently well, Michael and I set out a schedule to meet every Tuesday and Thursday and work on finding corporate clients. Right now, this side of the business really seems like it has the most potential. We still don't have any huge leads or anything, but I'd like to continue to pursue this.
Problem & Challenges:
I really appreciate the response I got to last weeks session. I'll email responses separately, sorry I haven't gotten back, just been in a slump.
Finances As I mentioned above, this week I focused mainly on finances. This is because I don't understand how CANcube is not making money and without understanding this I'm not sure how I can aim to build a proper business model. I'm slowly figuring out bookkeeping but it's been a bit of a struggle. I just don't know how to properly attribute things. Depreciation throws me for quite a loop. I have a suspicion that this is where I'm losing money, but I just feel like I'm missing the knowledge to assess that. Does anyone have accounting tips? Should I be doing profit and loss statements each month? I just feel a little lost here. Would it be worth it to hire an accountant to sort everything out?
Viability? I talked about this a lot last week, but I need help to determine viability. I spent a good like 3 or 4 hours just thinking through _how _ to determine if CANcube is a viable business in its current form. Here is the statement that I would like to prove true or false: In its current form (but scaled) CANcube can run an operating profit with 2-5 employees on board. My logic to prove or disprove this would work like this: a) What is the market size? How many people would consider purchasing a cube from me? b) What is the Lifetime Value per customer? c) What is net profit margin? *Important to include wages here since I haven't done that in the past. With those 3 questions answered, I should be able to determine if the current business model works, or if it needs to be refitted. Does that make sense? Or are there better questions that I should be answering?
Action Items Planned for Next Week
- Launch the Black Friday Sale - I need to a) put all the discounts live on the site, b) put updated graphics, c) launch ads. Very interested to see how the ads perform.
- Vancouver Select - I want to have everything for Vancouver Select done by Sunday. This will give me plenty of time to catch things that I may have missed. I really want this competition to be good
- More finances - Look a bit more at Octobers revenues and expenses. But I don't want to get lost in them again. I've been spending a bit too much time there I think.